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For this questions, I need help to draw how the payoff diagram should look, please show a picture or illustration of the payoff diagram! Q
For this questions, I need help to draw how the payoff diagram should look, please show a picture or illustration of the payoff diagram!
Q Draw a payoff diagram of a when you
a buy a call option with strike price What is the value of the option at maturity if
the value of the underlying stock is
b buy a put option with strike price What is the value of the option at maturity if the
value of the underlying stock is
c sell a call option with strike price
d sell a put option with strike price
e For each diagram a and b above, indicate where the option is inthemoney, atthe
money, and outofthemoney.
Q On each of the diagrams above, draw a profit diagram, assuming that the option price is
for all four cases
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