Question: Need full answers thx. b) A call and put option on Qantas Ltd both have the same expiration date. The put option has a strike

Need full answers thx.

Need full answers thx. b) A call and put option on Qantas

b) A call and put option on Qantas Ltd both have the same expiration date. The put option has a strike price of $2 and costs $0.25. The call option has a strike price of $4 and costs $0.20. Given this information, answer the following questions: i. ii. iii. Explain how a strangle can be created from these two options (2 marks) Construct a table showing the profit from the strategy (4 marks) For what range of stock prices with the strategy lead to a profit? (2 marks)

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