Question: please plot I. Consider the following option strategy. Note: All options are European option. Long one put option with X-price $1.14/ at a premium of
please plot
I. Consider the following option strategy. Note: All options are European option. Long one put option with X-price $1.14/ at a premium of $0.03 Short another put option with X-price $1.09/ at a premium of $0.01 1. Plot the payoff chart of the option strategy above (35 points) 2. Compute and mark the break-even point on the grid paper (5 points). 3. Write up the maximum net profit and loss on the grid paper (5 points) 4. Name the above option strategy (5 points)
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