1. Option values Is it more valuable to own an option to buy a portfolio of stocks or to own a portfolio of options to buy each of the individual stocks? Say briefly why. 2. Option payoffs Figure ...

1. Option values Is it more valuable to own an option to buy a portfolio of stocks or to own a portfolio of options to buy each of the individual stocks? Say briefly why.

2. Option payoffs Figure 20.14 shows some complicated position diagrams. Work out the combination of stocks, bonds, and options that produces each of these positions.

May 26, 2022

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1. Option values Is it more valuable to own an option to buy a portfolio of stocks or to own a portfolio of options to buy each of the individual stocks? Say briefly why. 2. Option payoffs Figure ...

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