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The XYZ company's current stock price is $205 a share. Consider a European Call option and a European Put option on XYZ Company's stock, expiring

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The XYZ company's current stock price is $205 a share. Consider a European Call option and a European Put option on XYZ Company's stock, expiring 3 months from today. The European Call Option has a strike price of $220 and is selling for $3.8. The European Put Option has a strike price of $210 and is selling for $9.2. (a) Draw the profit (also called Gain/Loss) diagram of LONG ONE PUT OPTION position at maturity as a function of the price of the underlying stock on that day. Mark all important points on the diagram. What is the maximum gain possible? Maximum loss possible? Break-even stock price at maturity? (b) Draw the profit diagram of SHORT ONE CALL OPTION position at maturity, as a function of the price of the underlying stock on that day. Mark all important points on the diagram. What is the maximum gain possible for the position? Maximum loss possible for the position? Break-even stock price at maturity

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