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Discuss the risks and payoffs of the following positions, accompanied by payoff graphs. Buy stock and a put option on the stock. Buy a stock.

Discuss the risks and payoffs of the following positions, accompanied by payoff graphs.

Buy stock and a put option on the stock.

Buy a stock.

Buy a call.

Buy stock and sell a call option on the stock (covered call).

Buy a bond.

Buy stock, buy a put, and sell a call.

Sell a put (naked put).

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