Question: plesse answer question III. answers 1, 2, 3 AND 4 PLEASE!!!! III. Consider the following option strategy of two put options. Long a put option
plesse answer question III. answers 1, 2, 3 AND 4 PLEASE!!!!
III. Consider the following option strategy of two put options. Long a put option with X-price $1.14/ at a premium of $0.03/ Short a put option with X-price $1.09/ at a premium of $0.01 1. Plot the payoff chart of the above option strategy ( 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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