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Suppose you own a portfolio of options on Warwick plc stock which consists of one long European-style put option with maturity date 1 March and
Suppose you own a portfolio of options on Warwick plc stock which consists of one long European-style put option with maturity date 1 March and strike price 4.50 and one short European style call option with maturity date 1 March and strike price 4.50. Assume each option is on one stock. Calculate the payoff to your option portfolio on 1 March if the stock price on 1 March is (i) 4.00, (ii) 4.80. * Enter your
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