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Let S(t) be the time t-price of a stock. A derivative has the following payoff structure: Stock Price S(1) 70 Payoff 60 - S(1) 0

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Let S(t) be the time t-price of a stock. A derivative has the following payoff structure: Stock Price S(1) 70 Payoff 60 - S(1) 0 S(1) - 70 1) Give the name of this derivative and how this derivative is created. 2) Find the maximum and minimum payoff

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