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QUESTION

Explain the differences among these. Draw the profit/payoff graph and explain when and why it is earning profits when market price above/under

Explain the differences among these. Draw the profit/payoff graph and explain when and why it is earning profits when market price above/under executive price?

For each of the following:

  1. Buyer of call
  2. Buyer of put
  3. Seller of call
  4. Seller of put
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