Question

2. You buy one call with a $50 strike price for $5/option. Draw a profit/loss graph...

2. You buy one call with a $50 strike price for $5/option. Draw a profit/loss graph for the call.

3. You buy one put with a $50 strike price for $5\option. Draw a profit/loss graph for the call.

4. The trades you did in problems 2 and 3 above together constitute a straddle. Graph the combined position from problems 2 and 3.

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Answer #1

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