We use notation ck and pk to represent call and put options, Ask an Expert

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We use notation Ck and Pk to represent call and put options for a given stock with a strike price K respectively. Let be the price of the stock at the maturity of the options. Draw the graphs of the payo? as a function of S for the following portfolios involving options at their maturity.

Hold one share of stock and short one call optionC100

Hold one call option C100 and one put optionP100 .

Hold one put option P100 and two call option C120; short one put option P80 and one call optionC150 .

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Basic Finance, Finance

Category:- Basic Finance
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