Question: Draw a long call, short call, long put, short put, labeling the two axes. What is the difference between a theoretical option value and an

Draw a long call, short call, long put, short put, labeling the two axes. What is the difference between a theoretical option value and an actual payoff? What does the put-call parity relationship represent? Provide an example of combining options into a strategy that is long volatility. Describe the construction of and rationale for a covered call? A protective put?

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