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Suppose that the price of a share of stock XYZ corporation is currently at 20$ per share. Consider buying a call option with strike price

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Suppose that the price of a share of stock XYZ corporation is currently at 20$ per share. Consider buying a call option with strike price 40$ and simultaneously selling another call option with strike price 60$. Both options have the same underlying asset and same maturity date. A) Draw a payoff diagram of this portfolio. Then, compute payoff. B) If the stock price is $60, what would be your profit? C) If the stock price is $100, what would be your profit? Suppose that the price of a share of stock XYZ corporation is currently at 20$ per share. Consider buying a call option with strike price 40$ and simultaneously selling another call option with strike price 60$. Both options have the same underlying asset and same maturity date. A) Draw a payoff diagram of this portfolio. Then, compute payoff. B) If the stock price is $60, what would be your profit? C) If the stock price is $100, what would be your profit

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