Construct payoff and profit function and draw payoff

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Reference no: EM131970401

Let an investor is considering buying a put option for stock ABC with the following parameters. Exercise price of the put option is $170, initial stock price $165, put option price $8.

Construct payoff and profit function and draw payoff and profit diagram for the put option buyer at maturity with respect to stock price at expiration.

Reference no: EM131970401

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