When an investor is long the stock and short the call

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1. The Black-Scholes-Merton option pricing model assumes the stock price changes are lognormally distributed. Show graphically how this distribution changes when an investor is long the stock and short the call.

2 .The Black-Scholes-Merton option pricing model assumes the stock price changes are lognormally distributed. Show graphically how this distribution changes when an investor is long the stock and long the put.

Reference no: EM131324248

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