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Draw the expiration date payoff diagrams for the following investment strategies: (You can draw by hand.) (a) Buy a put option with a strike price
Draw the expiration date payoff diagrams for the following investment strategies: (You can draw by hand.)
(a) Buy a put option with a strike price of $30, sell a put option with a strike price of $80 and borrow the present value of $50 at the risk-free rate.
(b) Buy a call option with a strike price of $100, sell a call option with a strike price of $150 and buy a share of stock.
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