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Unformatted text preview: . 5 100 + 0 . 1 100 26 = 310 . The margin requirement is $310 per contract. 2. Use a payo f diagram to illustrate how a bear spread can be created with put options. Buy a put with a higher strike price and sell a put with a lower strike price. Your diagram should show not only the payo f of the bear spread, but also the payo f s of the component puts. 1...
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This note was uploaded on 03/19/2008 for the course FI 478 taught by Professor Yu during the Spring '08 term at Michigan State University.
- Spring '08