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
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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