Question: A trader creates a short strangle using put options with a strike price of $195 per share and call options with a strike price of

A trader creates a short strangle using put options with a strike price of $195 per share and call options with a strike price of $205 per share. The trader sells 10 put contracts and 10 call contracts. Each contract is written on 100 shares of stock. The put option is worth $7 per share, and the call option is worth $8 per share. What is the profit of the short strangle at maturity as a function of the then stock price?

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