Illustrate the outcome of the combined position at expiry

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Reference no: EM131579641

You decided to establish a position (unrelated to part a and b) by buying a share of the stock for $50, buying a 6-month put option with exercise price $45, and writing a 6-month call option with exercise price $55. Draw a payoff (not profit and loss) graph to illustrate the outcome of the combined position at expiry. Clearly label all axes and important points, showing relevant numbers on the axes.

Reference no: EM131579641

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