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A trader sells a put option with a strike price of $40. The put costs $4. A. Draw a diagram showing the variation of the

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A trader sells a put option with a strike price of $40. The put costs $4. A. Draw a diagram showing the variation of the trader's profit with the asset price. (8 points) B. What price range would make the put option in- the-money? What price range would make the put option out-of-the-money? (5 points) + 6

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