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Assume an investor takes 2 positions: first, a long position in a call option with an exercise price of 50 and a premium of 8;
Assume an investor takes 2 positions: first, a long position in a call option with an exercise price of 50 and a premium of 8; second, a long position in a put option with the exercise price of 50 and a premium of 7. What is the name of this combination strategy? When do investors hold this combination strategy? Show the profit diagram combining both the positions. Calculate the breakeven points.
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