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Explain payoff with a diagram showing the variation of the traders profit with the change in the underlying asset price to establish the argument of
Explain payoff with a diagram showing the variation of the traders profit with the change in the underlying asset price to establish the argument of option trading strategy. A trader buys a call option with a strike price of $45 and a put option with a strike price of $40. Both options have the same maturity. The call costs $3 and the put costs $4. [Use excel graph function for diagram]
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