Which of the following combinations have similarly shaped profit/loss diagrams? Covered Call vs. a short stock...

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Which of the following combinations have similarly shaped profit/loss diagrams? Covered Call vs. a short stock combined with

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Answer 1

Answer #1

A combined long call and a short put, with exercise prices equal to the current stock price, will have profit/losses at expiration nearly identical to those of a long stock position.

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Long call option combined with a short put position vs Long a stock

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Answer 2

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