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Exercise 4. Consider a portfolio that consists of the following derivatives: 1) a call option...

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Exercise 4. Consider a portfolio that consists of the following derivatives: 1) a call option purchased with strike price K 10, 2) two call options written (sold) with strike price K 5, and 3) a call option purchased with strike price K. The stock price at maturity is St. What are the payoffs at expiration of this portfolio? Write the payoffs and draw the payoff graph

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