Here is question no 6 use data from Q6

7. A long straddle is formed by simultaneously opening a long call contract and a long put contract with the same exercise price and expiry date. Using data from Qn. 6, one such straddle is formed in June 1997 with Dec 180 Orange calls and puts. Determine the mathematical expression for the expiry profit (per option) on this straddle and construct the corresponding expiry profit and loss diagram for this strategy. What should be your opinion about the future of Orange share prices if you were to invest in such a straddle? 6. A bull call spread is a spread of call options that profits when the price of the share rises. One such spread is formed in June 1997 by simultaneously opening a long Dec 180 Orange call contract at 28 p and a short Dec 200 Orange call contract at 17 p. Determine the mathematical expression for the expiry profit on this spread and construct the expiry profit and loss diagram. Repeat for the bull put spread formed in June 1997 by simultaneously opening a long Dec 180 Orange put contract at 53 p and a short Dec 200 Orange put contract at 131 p. Comment on any differences between the two strategies