You buy a share of BP stock for 150, and a six-month call option at 160...

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Finance

  1. You buy a share of BP stock for 150, and a six-month calloption at 160 for 9.83. You sell a six month put option at 150 for11.12.   You hold your portfolio until the expirationdate. On the expiration date you cash out your portfolio. Graph theprofits of your strategy as the price of BP stock at the expirationdate goes from 125 to 200. Profits equal the amount you receive atthe expiration date for cashing out your portfolio minus the amountyou paid for the portfolio.

(Please include a table with at least 50 data points for thegraph.)

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You buy a share of BP stock for 150, and a six-month calloption at 160 for 9.83. You sell a six month put option at 150 for11.12.   You hold your portfolio until the expirationdate. On the expiration date you cash out your portfolio. Graph theprofits of your strategy as the price of BP stock at the expirationdate goes from 125 to 200. Profits equal the amount you receive atthe expiration date for cashing out your portfolio minus the amountyou paid for the portfolio.(Please include a table with at least 50 data points for thegraph.)

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