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The current stock price is $28. AEuropeancallwith a strike of $30 costs $3.How do you establish a reverse covered call using these securities? Draw a
The current stock price is $28. AEuropeancallwith a strike of $30 costs $3.How do you establish a reverse covered call using these securities? Draw a diagram showingthe variation of the traders profit with the asset price.Atwhat stock price will the strategybreak even?
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