DO NOT COPY AND PASTE ANY ANSWER FROM OTHER CHEGG POSTS

Please show all work so I can learn. Thanks!

___________________________

Consider the following investment strategy involving put options on a stock with the same expiration date.

i) Buy one 25-strike put

ii) Sell two 30-strike puts

iii) Buy one 35-strike put

Calculate the payoffs of this strategy assuming stock prices (i.e., at the time the put options expire) of 27 and 37, respectively.

_______________________________

A) 2 and 2

B) 0 and 0

C) 2 and 0

D) 2 and 2

E) 14 and 0