Question: For problem 2 use the following information: , Consider 3-month options with premium Strike 35 Call Premium Put Premium 6.13 0.44 2.78 40 45

For problem 2 use the following information: , Consider 3-month options with

For problem 2 use the following information: , Consider 3-month options with premium Strike 35 Call Premium Put Premium 6.13 0.44 2.78 40 45 1-99 0.97 5.08 and the effective annual interest nate 8.33%. 2. trite down the pay off function, profit function and draw a profit diagram for the following options: (i). Straddle : buy call and a put with Strike 40. I will be good for both up/down but high premium). (ii) Strangle Call buy 35- strike put and 45- Strike (iii) Symmetric butterfly spreads : straddle + buy 35- strike written put and 40- strike 45- Strike call.

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