Question: Consider a portfolio II = ST - CT where ST is a stock and CT is a call option on the same stock with

Consider a portfolio II = ST - CT where ST is a

Consider a portfolio II = ST - CT where ST is a stock and CT is a call option on the same stock with strike price K and expiration date T. By drawing a graph of value of II, where x-axis denotes the stock price ST at time T, show that 0 ST-CT K.

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