A trader buys (long) a call option with a strike price of $120 and sells (short) a put option with a strike price of $100. Both options have the same maturity. The call costs $20 and the price of put is $10. What is the portfolio payoff at expiry if the security price at expiry is $70? Draw a diagram showing the variation of the trader's profit with the security price at

Q: pecia

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A:

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A:

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