Question
Draw the resulting payoff from the following combination of options. Make sure that you specify the coordinates of the payoff (x,y) at the intercept and
Draw the resulting payoff from the following combination of options. Make sure that you specify the coordinates of the payoff (x,y) at the intercept and at every strike price.
a. 1 long call with strike price 10 and 1 short call with strike price 12.
b. 1 short put with strike price 5 and one long put with strike price 9.
c. 1 long call with strike price 10 and 2 short call with strike price 12.
d. 5 long calls with strike price 12 and 2 short calls with strike price 14.
e. 3 long put with strike price 5, 2 short puts with strike price 7 and 4 long puts with strike price 9.
f. 1 short put with strike price 4, 1 long call with strike price 7 and long 1 stock.
g. 2 short stocks, 1 long put at strike price 5 and 1 long call at strike price 9.
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