Question: 4. (DOUBLE CREDIT - 2 POINTS) a. Where the left and right tic-marks are exercise prices 60 and 80, respectively, explain how the strangle payoff

4. (DOUBLE CREDIT - 2 POINTS) a. Where the left and right tic-marks are exercise prices 60 and 80, respectively, explain how the "strangle payoff above can be created with a put and call. b. Suppose that the price variance of the underlying security rises. What happens to the payoff pattern from the point of view of a prospective purchaser of the put and call. Explain

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