Draw profit diagram for yourself and your counterparty

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Reference no: EM13270489

Suppose that you write a put contract with a strike price of $40 and an expiration date in 3 months. The current stock price is $41 and the contract is on 100 shares.
(a)Draw profit diagram for yourself and your counterparty. (b) Are you in long or short position on the underlying asset?
(c)Are you in long or short position on the option?

Reference no: EM13270489

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