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Homework Assignment #6 Draw diagrams showing the variation of an invertor's profit and loss with the terminal stock price for a portfolio consisting of (a)

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Homework Assignment #6 Draw diagrams showing the variation of an invertor's profit and loss with the terminal stock price for a portfolio consisting of (a) (b) (c) (d) (e) (f) One share of stock and a short position in one cell option Two shares of shock and a short position in one call option One share of shock and a short position in two call options One share and a short position in four call options One share of stock and a long position in two put options Long position in one call and a short position in one put In each case assume that the current stock price is $50, strike price for both the call and the put options are $50. Call premium is $5 and the put premium is $6. Sketch the net cashflows to appropriate positions. Create a separate graph for each portfolio

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