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Suppose your portfolio consists of: (1) A long position in 3 bull spreads constructed using European puts on a stock with strikes of $10 and
Suppose your portfolio consists of: (1) A long position in 3 bull spreads constructed using European puts on a stock with strikes of $10 and $20 and a maturity T; and (2) a short position in 2 butterfly spreads created from European calls having strikes $14, $17 and $20 on the same stock and with the same maturity T. Making a table show the portfolio payoff (ignoring setup costs) for the different possible stock price ranges and graph the portfolio payoff function
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