(Answered) Question a assume that you own a put and a call option on a

Finance

Question: (a) Assume that you own a put and a call option on a particular share, both exercisable at $10 and with the same expiration date. Plot your payoff on the expiration date of these options as a function of the share price at that time.

(b) Assume that you issued or sold

(i) a call option,

(ii) a put option, and

(iii) a put and a call option with the same expiration date on a particular share, each exercisable at $10. For each case, plot your payoff on the expiration date as a function of the share price at that time.

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