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We consider the following options strategy on a stock and its total payoff at the expiry date of option #3. For the options with a

We consider the following options strategy on a stock and its total payoff at the expiry date of option #3.

For the options with a remaining life, we use BSM model to determine their values. We assume a volatility of 23% and a risk-free rate of 4%.

option type position remaining life strike
1 call longx2 0.25 100
2 call shortx3 1 120
3 call longx1 0 140

Question: Use Excel to draw the payoff pattern for prices between $40 and $240 with a step of $10.

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