Question: PROBLEM 2. (10 points] Calculate the payoff function in the following portfolio. What is the graph of the payoff function? Assume all options are European

PROBLEM 2. (10 points] Calculate the payoff function in the following portfolio. What is the graph of the payoff function? Assume all options

PROBLEM 2. (10 points] Calculate the payoff function in the following portfolio. What is the graph of the payoff function? Assume all options are European and have the same expiration date T. (a) Long three calls with a strike price of $20, short five calls with a strike price of $30. (b) Long one call with a strike price of $25, long one call with a strike price of $40, and short two call options with a strike price of $35

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