What view is one taking of the performance

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Reference no: EM133376980

Question: Plot the payoff for a portfolio P of the following options on the same underlying and having the same exercise time: (i) Op1 is a European call with strike 20 (ii) Op2 is a European call with strike 30 (iii) Op3 is a European call with strike 40 P = Op1 - 2Op2 + Op3 (the minus sign indicates a short sale). If one buys P when S = 100 what view is one taking of the performance of S before exercise time?

Reference no: EM133376980

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