Question: FINANCE practice question Please solve step by step! You have a stock with value 40 and call options on this stock. Draw the payoff diagram

 FINANCE practice question Please solve step by step! You have a

FINANCE practice question Please solve step by step! You have a stock with value 40 and call options on this stock. Draw the payoff diagram at maturity of the following option position: long position in a call with strike 30 short position in two calls with strike 40, and short position in a call with strike 50. When would you enter into this kind of position

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