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Draw a position diagram showing the payoffs

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Reference no: EM133110276

Suppose you buy a one-year European call option on wheat prices with an exercise price of $7.50 and sell a one-year European put option with the same exercise price. The current wheat price is $7.50, and the interest rate is 10%. I need in an excel spead sheet thanks.

Draw a position diagram showing the payoffs from each investment and a combined position diagram (3 different diagrams).

What would the combined position cost you? Explain

Reference no: EM133110276

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