Question
Consider the strategy: Buy a call option with strike price 80, sell a call option with strike price 90, sell a call option with strike
Consider the strategy: Buy a call option with strike price 80, sell a call option with strike price 90, sell a call option with strike price 100, and buy a call option with strike price 110. Which of the following strategies will have a similar looking "net payoff" diagram as the one described. (Similar looking. Thus you do not need to worry about exact values and places of kinks.)
a. Buy a put option with strike price 50, sell a put option with strike price 60, sell a put option with strike price 70, and buy a put option with strike price 80.
b. Sell a call option with strike price 80 and buy a call option with strike price 100.
c. Buy a call option with strike price 60, sell two call options with strike price 70, and buy a call option with strike price 80
d. Buy a put option with strike price 80, sell a put option with strike price 90, sell a call option with strike price 100, and buy a call option with strike price 110.
e. Buy a put option with strike price 80, sell two put options with strike price 90, and buy a put option with strike price 100
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