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Consider the following portfolio: Long 1 calls with strike price 128 Short 0 calls with strike price 128 Long 1 calls with strike price 130.5
Consider the following portfolio:
Long 1 calls with strike price 128
Short 0 calls with strike price 128
Long 1 calls with strike price 130.5
Short 0 calls with strike price 130.5
Complete the following payoff table. What choice corresponds to the last row of the table?
position | 128 | 128 < 130.5 | > 130.5 |
portfolio |
Solve manually. No excell
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