Question: Explain a portfolio that would generate the given graph as the payoff function of the portfolio. Give the forumla for the payoff function. a. For
Explain a portfolio that would generate the given graph as the payoff function of the portfolio. Give the forumla for the payoff function.
a.

For this one I have long call K = 70 / short put K = 50. Not sure if its right? Please also do the payoff function.
b.

Explain a portfolio that would generate the given graph as the payoff function of the portfolio. Give the forumla for the payoff function. Explain a portfolio that would generate the given graph as the payoff function of the portfolio. Give the forumla for the payoff function
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