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Assume the following S&R index options with 6 - months to expiration with premiums are given. Suppose that the cost of the S & R
Assume the following S&R index options with months to expiration with premiums
are given.
Suppose that the cost of the & index is $ now and that you buy the S&R index
and a strike put and sell a strike call. Calculate the profit of your position
and plot the profit diagram.
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