Question: Part 3: Box Spread D) Consider buying a call option with a strike of $25 and selling a put option with a strike of $25.

 Part 3: Box Spread D) Consider buying a call option with
a strike of $25 and selling a put option with a strike

Part 3: Box Spread D) Consider buying a call option with a strike of $25 and selling a put option with a strike of $25. Consider buying a put option with a strike of $30 and selling a call option with a strike of $30. Fill in the table for the payoffs of the box spread (10 points) Payoff from a box spread Stock price Payoff from Payoff from Total range bull call spread bear put spread payoff Sy K2 K2 - K 0 K2 - K E) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the box. Label the axes and chart title (10 points) Put option Short put option Long put option K1= K2= 110 7E) Box Spread Payoff 18 09 Call option 00 Long call option Ki- 01 Short call option K2= 02 03 Stock Price (ST) Total Payoff 04 $0.00 05 $5.00 06 $10.00 107 $15.00 108 $20.00 109 $25.00 $30.00 111 $35.00 112 $40.00 113 $45.00 114 $50.00 115 $55.00 $60.00 117 118 F) Box Spread Plot 119 120 121 122 123 124 125 126 127 128 116

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