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  3. 6.4 construct an option position (i.e., some combi

6.4 Construct an option position (i.e., some combination of calls and/or puts) with the same...

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Finance

6.4 Construct an option position (i.e., some combination of calls and/or puts) with the same risk profile ( Call$/A$ versus S$/A$) as a forward contract to buy A$ at a forward price of F1$/A$=$0.75/A$. Use both words and graphs.

a) Label the axes.

b) Identify the asset underlying the options.

c) Indicate whether each option is a put or a call.

d) Indicate whether youre buying or selling the option.

e) Indicate the exercise price.

Please check this question, that can be related:

https://www.chegg.com/homework-help/questions-and-answers/62-based-information-problem-61-draw-payoff-profile-long-krone-put-option-expiration-note--q46018657

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