Question: (a) A trader buys a call option with a strike price of 25 and a put option with a strike price of 20. Both options
(a) A trader buys a call option with a strike price of 25 and a put option with a strike price of 20. Both options have the same maturity. The call costs 2 and the put costs 3. Draw a diagram showing the variation of the traders profit with the asset price. What trading strategy is being described here?
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