Question: please solve and explain without excel. An investor makes a strap strategy using the following asset when spot price of underlying is $45. 1. European
An investor makes a strap strategy using the following asset when spot price of underlying is $45. 1. European put with strike S45 for $3. 2. European put with strike $55 for $4.0. 3. European call with strike $45 for $4.5. 4. European call with strike $45 for $3.5. What is the payoff of the STRAP strategy if the spot price decreases to $30? Please complete the table below: Your answer shouldn't be more than ONE decimal places Option Position ST f(premium, price, value) Net Pay off $30 S $ $45 $30 SI S $45 $30 s $ $45 se Strategy cost Strategy Pay off $
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