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Problem 5: Draw a profit-loss diagram of of the following positions (identify breakeven price and maximum loss): Own a Stock, S0 (Spot Price) = $70,
Problem 5: Draw a profit-loss diagram of of the following positions (identify breakeven price and maximum loss): Own a Stock, S0 (Spot Price) = $70, Buy a put P0 (Put premium) = $6 with strike price of $65, (3 marks)
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