Consider the following portfolio-- long 1 puts with strike, Ask an Expert

Finance

Consider the following portfolio:

-- Long 1 puts with strike price 112.0

-- Short 0 puts with strike price 112.0

-- Long 0 calls with strike price 119.5

-- Short 1 calls with strike price 119.5

-- Long 2 shares of stock

Complete the following payoff table. What choice corresponds to the last row of the table?

Position S tau less or equal than 112.0 112.0 less than S tau less or equal than 119.5 S tau greater than 119.5.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92874582

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