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Need help with parts a b c. please draw a diagram. Complete all four questions below. The homework will be graded mostly based on completeness
Need help with parts a b c. please draw a diagram.
Complete all four questions below. The homework will be graded mostly based on completeness (refer to the syllabus for details). Show your work. You may work with other students, but you must submit your own work. Please do not copy somebody's homework as we will be checking for that. Remember to include both your name and section number (9 = 001; 10:30 = 002; 1:30 = 003). (Final 2010: 10 points; this is the points for that final not for this homework) Consider the following investment strategy using European options on Ford that expire in July. Write one call option with an exercise price of SI 70, and write another call option with an exercise price of SI 95. The first call (X=S170) is currently priced at S10 and the second call (X=S195) is priced at S5. Plot the profit of this strategy Why would you follow this strategy What arc the stock prices at which this strategy would break evenStep by Step Solution
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