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Construct the outcome diagram (without premiums) for the writer of a call ratio. To write a call ratio, buy the underlying security and write two
- Construct the outcome diagram (without premiums) for the writer of a "call ratio." To write a call ratio, buy the underlying security and write two at-the-money calls. Why would a trader write a "call ratio?" Also, Construct the outcome diagram for being short the underlying security and short a put at-the-money. What single investment has the same outcome diagram?
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