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Market prices are as follows: S = 50; r= 5%; T=1 K 40 16 ? 50 8 ? 60 1 ? (a) Provide the European

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Market prices are as follows: S = 50; r= 5%; T=1 K 40 16 ? 50 8 ? 60 1 ? (a) Provide the European put prices (b) Explain how to construct the following strategies and draw the payoffs - Bull spread using calls with K=40 and K=60 ,! Assignme...2.pdf - Bull spread using puts with K=40 and K=60 (b) Explain how to construct the following strategies and draw the payoffs - Bull spread using calls with K=40 and K=60 - Bull spread using puts with K=40 and K=60 Butterfly spread using calls with K=40, K=50, and K=60 - - Bottom straddle using a call and a put with K=50 Market prices are as follows: S = 50; r= 5%; T=1 K 40 16 ? 50 8 ? 60 1 ? (a) Provide the European put prices (b) Explain how to construct the following strategies and draw the payoffs - Bull spread using calls with K=40 and K=60 ,! Assignme...2.pdf - Bull spread using puts with K=40 and K=60 (b) Explain how to construct the following strategies and draw the payoffs - Bull spread using calls with K=40 and K=60 - Bull spread using puts with K=40 and K=60 Butterfly spread using calls with K=40, K=50, and K=60 - - Bottom straddle using a call and a put with K=50

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