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You are interested in creating the following payoff profile using options. What European options would you hold in your portfolio and at what strikes? Stock
You are interested in creating the following payoff profile using options. What European options would you hold in your portfolio and at what strikes?
Stock Price | 100 | 110 | 120 | 130 | 140 | 150 |
Payoff at expiration | 0 | 10 | 30 | 10 | 0 | -10 |
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