Question: (b) Graphically show how to construct a strangle strategy using two options. Analyse the payoff of the strategy, when the futures stock price is at

(b) Graphically show how to construct a strangle strategy using two

(b) Graphically show how to construct a strangle strategy using two options. Analyse the payoff of the strategy, when the futures stock price is at different level. (max. 150 words, 40 marks)

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