Show the payoff pattern for a naked purchase of a call on a stock. Show how (and explain why) this is similar to buying
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Show the payoff pattern for a naked purchase of a call on a stock. Show how (and explain why) this is similar to buying
Show the payoff pattern for a nakedpurchase of a call on a stock. Show how (and explain why)this is similar to buying a stock and buying a put on thestock. Explain.