Answer 5-12 Draw the long position's P&L diagram Draw the short...
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Accounting
Answer 5-12
Draw the long position's P&L diagram Draw the short position's P&L diagram What is the range of payoffs to the long position? What is the range of payoffs to the short position? What is the range of net P&L to the long position? What is the range of net P&L to the short position? What is the long position's breakeven point? What is the short position's breakeven point? What is the payoff to the long position at expiration? What is the payoff to the short position at expiration? Does the long position have positive or negative P&L? Does the short position have positive or negative P&L
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