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Consider an option strategy consisting of the following European options with the same maturity T and on the same underlying asset with price S Option

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Consider an option strategy consisting of the following European options with the same maturity T and on the same underlying asset with price S Option Number Call 1 Call Call Strike 20 25 30 Price 5 3 2 -2 1 Determine the profit/loss for this strategy for all possible terminal values of Sr by drawing a table, or explicitly writing the profit/loss in each terminal Sy region. Calculate the maximum profit and the maximum loss for this strategy. For what values of ST does this strategy result in profit, and for values of Sy does it result in a loss? Edit View Insert Format Tools Table Under what conditions would this strategy be appropriate

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