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Introduction to Financial Mathematics Question Suppose a stock s price S ( 0 ) = $ 2 3 and you purchase a call option with

Introduction to Financial Mathematics Question Suppose a stock

s price S

(0) =

23

and you purchase a call option with strike X

= 25

for $

5

and also sell a call option with strike X

= 35

for $

1 .

Draw the hockey

-

stick

/

payoff diagram. Make sure to draw the diagram

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