Assume Strike price = $80 (for plotting graph)
A. 2 long call + 1 long put position graph:
B. 1 Short call + 1 Short put position graph:
C. Long call + Long put graph is one in which an investor shall have to pay money (option cost) to earn the payoffs whereas, the short call + short put position is the one in which an investor shall receive money.
Get Answers For Free
Most questions answered within 1 hours.