Question: Consider a Box Spread involving options with exercise prices X1 and`X2, call prices c1, c2, and put prices p1, p2. Design the payoff to the

Consider a Box Spread involving options with exercise prices X1 and`X2, call prices c1, c2, and put prices p1, p2.

  1. Design the payoff to the strategy at expiration for various ranges of stock price.
  2. Discuss the significance of a Box Spread to an institutional investor

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