Problem

13. Draw a gross payoff diagram for a short position in a call at strike 100. Also draw th...

13. Draw a gross payoff diagram for a short position in a call at strike 100. Also draw the gross payoff diagram for a long position in a put option at the same strike and maturity as the call. Overlay these plots on the same axis to get an aggregate payoff diagram for the portfolio of call and put. What other security do you know of with the same payoff diagram as this portfolio?

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Solutions For Problems in Chapter 7