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An investor buys 100 shares of a stock, shorts 50 call options on the stock with strike price of $80 and buys 50 put options
- An investor buys 100 shares of a stock, shorts 50 call options on the stock with strike price of $80 and buys 50 put options on the stock with strike price of $40. All options are one-year European options. Draw a diagram illustrating the value of the investors portfolio as a function of the stock price after one year.
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Financial Markets And Corporate Strategy
Authors: Mark Grinblatt, Sheridan Titman
2nd Edition
0071157611, 9780071157612
