Diagram showing variation of an investors profit and loss
Course:- Financial Management
Reference No.:- EM131237350

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Draw a diagram showing the variation of an investor's profit and loss with the terminal stock price for a portfolio consisting of :

(a) One share and a short position in one call option

(b) Two shares and a short position in one call option

(c) One share and a short position in two call options

(d) One share and a short position in four call options. In each case, assume that the call option has an exercise price equal to the current stock price.

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