Question: Nonlinear Payoff Derivatives Assignment Consider an asset with a current spot price of $50. You SELL a one year 10% out of the money call

Nonlinear Payoff Derivatives Assignment

Consider an asset with a current spot price of $50. You SELL a one year 10% out of the money call on the asset with a premium of $3. You also buy a one year buy a 10% out of the money put on the asset with a premium of $4. Draw the payoff diagram for this structure (the call combined with the put). At what prices will you breakeven after accounting for the premium?

please notice it says sell instead of buy

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