Suppose you have a portfolio that has a long position in call Ce(So, T, X1) and a short position in call Ce(So, T, X2), where X2 < X1. Your portfolio value is higher than zero O zero not higher than zero O none of the other choices

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose you have a portfolio that has a long position in call Ce(So, T, X1) and a short
position in call Ce(So, T, X2), where X2 < X1, Your portfolio value is
O higher than zero
O zero
O not higher than zero
O none of the other choices
Transcribed Image Text:Suppose you have a portfolio that has a long position in call Ce(So, T, X1) and a short position in call Ce(So, T, X2), where X2 < X1, Your portfolio value is O higher than zero O zero O not higher than zero O none of the other choices
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