Draw payoff diagrams for each of the portfolios below x


Draw payoff diagrams for each of the portfolios below (X strike price).

a. Buy a share of stock and short a call, with X = $35.

b. Buy a risk-free zero-coupon bond with a face value of $35 and sell a put, with X = $35.

c. Explain how these payoff diagrams relate to the concept of put-call parity.

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Financial Management: Draw payoff diagrams for each of the portfolios below x
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