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Consider an option strategy which consists of buying a call option with strike price K1, and buying another call option with strike price K3>K1, and
- Consider an option strategy which consists of buying a call option with strike price K1, and buying another call option with strike price K3>K1, and selling two call options with strike price K2 that is halfway between K1 and K3. The options are European and have the same maturity.
- What is the name of this strategy? What is the strategy used for?
- Draw the profit diagram for the strategy.
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Public Finance In A Changing World
Authors: Peter Birch Sorensen
1998th Edition
0333682211, 978-0333682210
