Explain how you could construct a risk free payoff, Finance Basics

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Explain how you could construct a risk free payoff

Problem

Explain how you could construct a risk free payoff using a portfolio consisting of a stock that trades for 11 currently; a put option on that stock with strike price of 10; and a call option on that same stock with a strike price of 10. Illustrate your portfolio's properties by plugging in some numbers.

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Finance Basics: Explain how you could construct a risk free payoff

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