Assume you are using an exchange$-$traded option 'combination' strategy to hedge interest rate risk. Open the option combination position in the CME trading simulator and calculate the gain or loss of the total position. Please provide the following information:

Required:

Part I

What is your chosen exchange$-$traded option combination strategy? How is it created and why have you chosen this strategy?

Part II

Names and symbols of chosen two options contracts $($provide screenshots here$)$:

The opening price of each option position $($provide screenshot here$)$:

Types and positions of options:

Part III

No$.$ of contracts for both positions $($show calculations$)$:

Net premium and total cost of the hedge $($show calculations$)$:

Strike prices $($provide a screenshot of open positions$)$: How have you determined the strike prices?

Part IV

Maturities of options $($provide screenshot$)$:

Gain or loss $($show calculations$)($Provide a screenshot of open positions unrealised gains$/$losses$)$:

Based on the current market prices, please explain why you are experiencing the gain or loss that you are.