Question: please use excel sheet to show calculations and the graph. You create an options portfolio by selling a put option with an exercise price of
please use excel sheet to show calculations and the graph.
You create an options portfolio by selling a put option with an exercise price of while simultaneously purchasing a put option on the same stock with an exercise price of Both options expire on the same date.
a Illustrate the payoff structure of this portfolio at the options' expiration date.
On the same chart, display the portfolio's profit at expiration. Which of the two options should have a higher premium? Briefly explain why.
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