Question: Consider a call and a put on the same underlying stock. The call has an exercise price of $50 and costs $8. The put has

Consider a call and a put on the same underlying stock. The call has an exercise price of $50 and costs $8. The put has an exercise price of $40 and costs $7. Generate a table for a short position in a strangle based on these two options. What is the worst outcome from selling the strangle? At what stock price or prices does the strangle have a zero profit? In what range of stock prices does the strangle produce maximum profit? What is the maximum profit?

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