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Question 11. Coideone stock and a risk free bond that get rate r. Examine the following payoff graph Payof fr ST How many/much of tle
Question 11. Coideone stock and a risk free bond that get rate r. Examine the following payoff graph Payof fr ST How many/much of tle following do you need to buy for your portfolio to bave the payoff graplbed aboe? Shares of Stock Casrskree bond Call options withK- For example if you need four shares of stock and twenty dollars of cash invested in risk free rate wte 20, 0, 0, in the lines above. Ako, note tha is the amount of cash you nvest nitially that you should write on that le, and amounts can be negative Draw a gaph of the payolls from each of the four parts of your portfolio lsted above Question 11. Coideone stock and a risk free bond that get rate r. Examine the following payoff graph Payof fr ST How many/much of tle following do you need to buy for your portfolio to bave the payoff graplbed aboe? Shares of Stock Casrskree bond Call options withK- For example if you need four shares of stock and twenty dollars of cash invested in risk free rate wte 20, 0, 0, in the lines above. Ako, note tha is the amount of cash you nvest nitially that you should write on that le, and amounts can be negative Draw a gaph of the payolls from each of the four parts of your portfolio lsted above
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