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Compare and contrast the payoff diagram for a long position in a forward contract versus a short put position in the same underlying. Draw diagrams
Compare and contrast the payoff diagram for a long position in a forward contract versus a short put position in the same underlying. Draw diagrams and explain briefly. What happens if you combine these payoffs when the forward contract/fixed price is the same as the strike price in the put option? Draw the superimposed diagram and explain briefly
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