Business
Business, 02.04.2020 19:36, rileyjarvis87

You buy a share of stock, write a 1-year call option with X = $5, and buy a 1-year put option with X = $5. Your net outlay to establish the entire portfolio is $4. The stock pays no dividends.

What is the payoff of your portfolio?

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Answers: 3

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You buy a share of stock, write a 1-year call option with X = $5, and buy a 1-year put option with X...

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