Question: (a) Plot in two separate graphs the payoff at expiration for an investor who has a short position on a call option and the payoff

(a) Plot in two separate graphs the payoff at expiration for

(a) Plot in two separate graphs the payoff at expiration for an investor who has a short position on a call option and the payoff at expiration for an investor who has a short position on a put option. (b) Explain how the value of a put option is affected by its strike price. (c) Explain why a share of stock can be thought of as a call option on the assets of the firm with a strike price equal to the value of debt outstanding

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