Consider a box spread based on two distinct strike prices K and L with K < L that is used to lend money, so that there is a positive cost to this transaction up front, but a guaranteed positive payoff at expiration.

Determine which of the following sets of transactions is equivalent to this type of box spread.

I. Buy a K-strike put, buy a L-strike call, sell a K-strike call, and sell a L-strike put

II. Buy a K-L call bull spread and sell a K-L put bull spread

III. Buy a K-L strangle and sell a K-L strangle

(A) I only

(B) II only

(C) III only

(D) I, II, and III

(E) The correct answer is not given by (A), (B), (C), or (D)