1. Draw the payoff diagrams below labeling the axis with the correct profit or loss amounts....

 

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1. Draw the payoff diagrams below labeling the axis with the correct profit or loss amounts. a. Purchase of Microsoft common stock or take long stock position at $79 b. Long put position on Microsoft stock valued at $2 with a strike price of $75 c. Draw the synthetic option using information from parts a and b. d. Take a short stock position using Microsoft at $79 e. Long call position on Microsoft stock valued at $3 with a strike price of $90 f. Draw the synthetic option using information from parts d and e. 1. Draw the payoff diagrams below labeling the axis with the correct profit or loss amounts. a. Purchase of Microsoft common stock or take long stock position at $79 b. Long put position on Microsoft stock valued at $2 with a strike price of $75 c. Draw the synthetic option using information from parts a and b. d. Take a short stock position using Microsoft at $79 e. Long call position on Microsoft stock valued at $3 with a strike price of $90 f. Draw the synthetic option using information from parts d and e.

Answer rating: 100% (QA)

Draw the payoff Diagram Part 1 a Microsoft Stock purchased at 79 The Profit or loss on the at a given point of time after its purchase Price of the stock at the given point of time after its purchase ... View the full answer