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Construct payoff and profit diagrams for the purchase of a 1050-strike S&R call and sale of a 950-strike S&R call. Verify that you obtain exactly
Construct payoff and profit diagrams for the purchase of a 1050-strike S&R call and sale of a 950-strike S&R call. Verify that you obtain exactly the same profit diagram for the purchase of a 1050-strike S&R put and sale of a 950-strike S&R put. What is the difference in the initial cost of these positions?
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