The current stock price of ABC Corp. is 50. Prices for six-month calls on ABC are given
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The current stock price of ABC Corp. is 50. Prices for six-month calls on ABC are given in the table below. Draw a profit diagram of the following strategy: Buy one 40 call, write two 50 calls, buy one 60 call, and write two 70 calls.
Call Price
40....................16.5
50......................9.5
60......................4.5
70.........................2
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