Calculate the total payoff and profit on entire portfolio
Problem
An investor buys a 3-month European put option with K1 = $30 for $3 and sells a 3-month European put option with K2 = $35 for $1. Calculate The total payoff and profit on the entire portfolio/strategy. Show steps in calculation of payoff.
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An investor buys a 3-month European put option. Calculate The total payoff and profit on the entire portfolio/strategy. Show steps in calculation of payoff.
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