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 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 840, and short two call options with a strike price of $35

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