Plot the payoff diagram for lisas new portfolio

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Reference no: EM131316652

Suppose that Lisa Emerson owns a share of Zytex Chemical stock, which is worth $100 per share.

Lisa purchases a put option on this stock, with a strike price of $95, and she sells a call option, with a strike price of $105.

Plot the payoff diagram for Lisa's new portfolio and explain how it relates to this chapter's Opening Focus.

Reference no: EM131316652

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