Question: Please explain in great detail How can we replicate the terminal payoff function shown below by buying or selling call options, put options, and the
Please explain in great detailHow can we replicate the terminal payoff function shown below by buying or selling call options, put options, and the underlying stock? (when listing your portfolio of options and stock, specify whether you are long or short the option/stock and specify each option s exercise price) short 2.67 shares of stock Long 4.67 calls (X = 15) Long 4 calls (X = 30) Short 6.4 calls (X = 40) short 2.46 calls (X = 65) How can we replicate the terminal payoff function shown below by buying or selling call options, put options, and the underlying stock? (when listing your portfolio of options and stock, specify whether you are long or short the option/stock and specify each option s exercise price) short 2.67 shares of stock Long 4.67 calls (X = 15) Long 4 calls (X = 30) Short 6.4 calls (X = 40) short 2.46 calls (X = 65)
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