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financial engineering deals with the design of

Financial engineering deals with the design of new assets. Draw the payoff (at t=1) of the following bull butterfly spread:

Purchase 1 call with exercise price a

Sell 2 calls with exercise price (a+b)/2

Purchase 1 call with exercise price b

as a function of the underlying stock price S at t=1 (where a

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Business Economics: financial engineering deals with the design of

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Business Economics: financial engineering deals with the design of

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