Question: A trader sells a strangle (i.e. a reverse strangle) by selling a call option with a strike price of $50 for $3 and selling a

A trader sells a strangle (i.e. a reverse strangle) by selling a call option with a strike price of $50 for $3 and selling a put option with a strike price of $40 for $4.

What is the maximum profit?

What is the maximum loss?

What will be the payoff and profit if the spot price at expiration is $30; $55; 67?

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