You are interested in creating the following gross payoff prole using an options portfolio: ...

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Accounting

You are interested in creating the following gross payoff prole using an options portfolio:

Stock Price

60

70

80

90

100

110

120

130

140

150

Payoff

10

30

20

10

0

10

30

10

0

-10

What options, at what strikes, would you hold in your portfolio? Assume that the desired payoffs are zero for any stock price less than 50 or greater than 160.

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