Relationship between the two portfolios

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Reference no: EM131815468

Compute the gross payoffs for the following two portfolios:

(a) calls (strikes in parentheses): C(90) - 2C(100) + C (110)

(b) puts (strikes in parentheses): P(90) - 2P(100) + P(110) What is the relationship between the two portfolios? Can you explain why?

Reference no: EM131815468

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