Question: Need help in this question! 3. (35 points) A European capped call option is like a European call option except that the payoff is H

Need help in this question!

3. (35 points) A European capped call option is like a European call option except that the payoff is H Xfor some constant H > X, instead of S X, when the terminal stock price exceeds H. Construct a portfolio of European options with an identical payoff. Explain your reasoning

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