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Determine the profit equations and state the strategies (bearish or bullish market strategy), identify and draw graph for the breakeven stock price at expiration, minimum
Determine the profit equations and state the strategies (bearish or bullish market strategy), identify and draw graph for the breakeven stock price at expiration, minimum and maximum profits for the followings:
a. Take the following position: 1 covered call in long position
b. Take the following position: 1 protective put in long position (15 pts)
c. Take the following position: Long 1 covered call and short 1 protective put (30 pts)
just show the potential profits, break even points and graph with notations and state the strategies.
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