Question: An investor creates a trading position using a long position in a strangle and a short position in a straddle. The strangle is created by
An investor creates a trading position using a long position in a "strangle" and a short position in a "straddle." The strangle is created by a long call with strike $ and a long put with strike $ The straddle is created with a long call and a long put both with strike $ What resulting trading position is created from this strategy? Plot the payouts of the strangle, straddle, and the resultant strategy in an excel spreadsheet.
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