Question: 12. Explain how you can implement the following cash flows at the option maturity. (e.g. option types, long/short, exercise prices etc.) 1) strap (Note that

12. Explain how you can implement the following cash flows at

12. Explain how you can implement the following cash flows at the option maturity. (e.g. option types, long/short, exercise prices etc.) 1) strap (Note that the slope on the right line is steeper) Profit K S. Strap 3 2) strangle Profit K K2 S

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