Question: A diagonal spread is created by buying a call with a strike price X2 and exercise date T2 and selling a call with strike price
A diagonal spread is created by buying a call with a strike price X2 and exercise date T2 and selling a call with strike price X1 and exercise date Tl (T2>T1). Draw a diagram showing the profit when
a. X2>X1
b. X2
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