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Suppose you create a portfolio by holding 100 shares of McDonald’s stock, writing a call option on the stock with an exercise price of $55 and one year to expiration, and writing a put option on the same stock with an exercise price of $25 and one year to expiration. Set out the payoffs on this portfolio on the expiration date.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92085220

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