Question: Look at Figure 23.8, which shows the possible future payoffs in January 2011 from a particular package of investments. a. What package of investments would

Look at Figure 23.8, which shows the possible future payoffs in January 2011 from a particular package of investments.
a. What package of investments would provide you with this set of payoffs?
b. How much would the package have cost you in July 2010?
c. In what circumstances might it make sense to invest in this package? Incidentally, this package
of investments is known as a "straddle" by option buffs.

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