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can someone show me how to put the table and graph together step by step? Draw the payoff diagram for the following position: (i) long
can someone show me how to put the table and graph together step by step?
Draw the payoff diagram for the following position: (i) long one 40-strike put, (ii) short one 35-strike put, (iii) short one 25-strike put, and (iv) long one 20-strike put. Assume all options have the same underlying and the same time to expiration. Be sure to label the axes of your graph. Briefly explain how these options combine to form the payoff diagram that you drew. Draw the payoff diagram for the following position: (i) long one 40-strike put, (ii) short one 35-strike put, (iii) short one 25-strike put, and (iv) long one 20-strike put. Assume all options have the same underlying and the same time to expiration. Be sure to label the axes of your graph. Briefly explain how these options combine to form the payoff diagram that you drewStep by Step Solution
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