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Let a certain stock be selling at Rs 87. An investor feels that significant change in price is unlikely in next 3 months. ,he observe

Let a certain stock be selling at Rs 87. An investor feels that significant change in price is unlikely in next 3 months. ,he observe market price of 3 moths of call as

strike price Call Price

85 14

90 10

95 7

Graphically represent the trading strategies ( spread, straddle, and strangle) and give pay off for each strategy when the expected stock prices are Rs 83 and Rs 92.

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