Question: Draw the payoff structure for a seagull option with the following parameters: - The hedger uses 2 puts and 1 call option to construct the

Draw the payoff structure for a seagull option with the following parameters: - The hedger uses 2 puts and 1 call option to construct the seagull - All options have same expiry date and are for the same contract size/notional - The underlying asset X has a spot price of S0. - The hedger sells one put with a strike of K1 for premium P1 - The hedger buys one call with a strike of K2 at a cost of P2 - The hedger buys one put with a strike of K3 at a cost of P3 - These relationships hold: o K3 < S0 = K1 < K2 o P1 = P2 + P3

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