Question: You are interested in creating the following payoff profile using options. What European options would you hold in your portfolio and at what strikes? Assume

  1. You are interested in creating the following payoff profile using options. What European options would you hold in your portfolio and at what strikes? Assume that the desired payoffs at expiration are zero for any stock price less than 100 or more than 160. You are interested in creating the following payoff profile using options.

100 110 120 130 140 150 Stock Price Payoff at expiration 0 10 30 10 0 -10 100 110 120 130 140 150 Stock Price Payoff at expiration 0 10 30 10 0 -10

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