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Consider the following information: a) Show the Profit/Loss diagrams, for each of the following four options (long call, short call, long put, short put). (Hint:
Consider the following information: a) Show the Profit/Loss diagrams, for each of the following four options (long call, short call, long put, short put). (Hint: Assume a range of $120 to $200 for Stock prices at Expiration (ST) ). b) For each of the above four options, determine i) The maximum loss ii) The break even iii) The maximum profit
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