Question: A trader buys both a call option and a put option for natural gas at the same strike price of ( q =

A trader buys both a call option and a put option for natural gas at the same strike price of \( q=\$ 3\) per MMBtu. Suppose that the market price \( P \) can be realized at two values \(\$ 2\) and \(\$ 4\) with respective probabilities of \(1/4\) and \(3/4\). a) Find the future value of the call option for the trader. b) Find the future value of the put option for the trader. c) Is a trader buying both of the above options a risk-averse or risk-seeking trader, why?
A trader buys both a call option and a put option

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