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Draw a payoff and profit diagram for a long straddle: we are buying a 50 put for 6 and a 50 call for 4. Payoff
Draw a payoff and profit diagram for a long straddle: we are buying a 50 put for 6 and a 50 call for 4. Payoff is a solid line. Profit is a dashed line. You can draw it by hand or using draw tools. Which shape corresponds the closest to the payoff profile? B A C D
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