Consider the following portfolio: Long 0 calls with strike price 77.0 Short 1 calls with strike price 77.0 Long 1 calls with strike price 102.0 Short 0 calls with strike price 102.0 Complete the following payoff table. What choice corresponds to the last row of the table? Position ST ≤ 77.0 77.0 < ST ≤ 102.0 ST > 102.0                 portfolio

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider the following portfolio:

  • Long 0 calls with strike price 77.0
  • Short 1 calls with strike price 77.0
  • Long 1 calls with strike price 102.0
  • Short 0 calls with strike price 102.0

Complete the following payoff table. What choice corresponds to the last row of the table?

Position

ST ≤ 77.0


77.0 < ST ≤ 102.0

ST > 102.0
       
       

portfolio

     

 

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