a$)$ Explain how a straddle and strangle spread $($use OTM options$)$ can be

created to speculate on low volatility.

b$)$ Construct a table showing the profit of strangle.

c$)$ Construct a table showing the profit of straddle.

d$)$ Determine the range of stock prices in $3$ months for which straddle

outperforms strangle.

e$)$ Draw profit diagram of both straddle and strangle spread on the same

graph. Carefully label the levels and turning points such as maximum profit,

maximum loss, and break$-$even prices on the graph.