Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You are long both a call and a put on the same share of stock with the same
exercise date. The exercise price of the call is $40 and the exercise price of the put is
$45. Plot the value of this combination as a function of the stock price on the exercise
date (draw a payoff diagram)
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