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Note # 2 : Assume that all options are European unless otherwise said. Problem 1 Suggest two different portfolios that produce the payoff diagram as
Note # : Assume that all options are European unless otherwise said.
Problem Suggest two different portfolios that produce the payoff diagram as in the
graph below. Both portfolios may contain options, any amount of riskfree borrowing or
lending, and the underlying stock. Portfolio may contain call options but no put options.
Portfolio may contain put options but no call options.
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