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Three put options on a stock have the same expiration date and strikes of $55, $60. and $65. The market prices are $3, S5, and
Three put options on a stock have the same expiration date and strikes of $55, $60. and $65. The market prices are $3, S5, and $8 respectively. A trader buys a put with the low strike and the high strike and sells two puts with the intermediate strike price.- Plot the profit function of the position at the expiration date. Show (Explain) how you obtained your final graph, and indicate the range of stock prices where you will profit. Three put options on a stock have the same expiration date and strikes of $55, $60. and $65. The market prices are $3, S5, and $8 respectively. A trader buys a put with the low strike and the high strike and sells two puts with the intermediate strike price.- Plot the profit function of the position at the expiration date. Show (Explain) how you obtained your final graph, and indicate the range of stock prices where you will profit
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