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The Payoff Diagram for a Put with the Same Exercise

Question 22

Multiple Choice

The payoff diagram for a put with the same exercise price and premium as the call on the same underlying asset with the same maturity is:


A) the inverse of the call diagram along the put price.
B) unrelated to the call diagram no matter what the exercise price.
C) the mirror image of the call diagram around the exercise price.
D) exactly the same as the call diagram for the given exercise price.

Correct Answer:

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