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Posted on Jul 19, 2024

An investor sells a European call option with strike price of E and maturity T and buys a put with the same strike price and

An investor sells a European call option with strike price of E and maturity T and buys a put with the same strike price and maturity on the same underlying asset.

a)Create a payoff table of this position at expiration

b) Show this payoff on a graph.

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