Draw a payoff diagram for the given portfolios

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Reference no: EM131316655

Draw a payoff diagram for the following portfolios:

a. Buy a bond with a face value of $80, buy a call, with X = $80, and sell a put, with X = $80.

b. Buy a share of stock, buy a put, with X = $80, and sell a call, with X = $80.

c. Buy a share of stock, buy a put, with X = $80, and sell a bond with a face value of $80.

Reference no: EM131316655

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