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V.9:1 (20-22): SIDEBAR: RELEVANT FORMULAS AND OBSERVATIONS

V.9:1 (20-22): SIDEBAR: RELEVANT FORMULAS AND OBSERVATIONS

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RELEVANT FORMULAS AND OBSERVATIONS

Focusing on the profit and loss profiles, we have established that:

Rstock + Rput - Rcall = 0

Where Rstock, Rput and Rcall are the riskprofit or loss of holding the stock, the put and the call, respectively. ...
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