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Betty and Bob are long 200 shares of XYZ @$42 and short 4 October 45 calls @$3 and long 1 October 40 put @$4. Analyze
Betty and Bob are long 200 shares of XYZ @$42 and short 4 October 45 calls @$3 and long 1 October 40 put @$4. Analyze the algebraic value, W, and profit and loss, Y, at expiration. Be sure to include formulae for W and Y. Be sure to include a table analysis. Be sure to draw the graph of Y versus X, the stock price at expiration. Algebraically determine the break-even points.
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