Question: A strap option strategy is created by purchasing two call options and one put option of the same underlying stock. The options have the same

A strap option strategy is created by purchasing two call options and one put option of the same underlying stock. The options have the same exercise price (E=50) and same expiration date.

a) What is the payoff of the strategy is the stock price is $0?

c) What is the payoff of the strategy is the stock price is $100?

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