Question: Question 4 (20 points) A trader buys a call option with a strike price of $49 and a put option with a strike price of

Question 4 (20 points) A trader buys a call option with a strike price of $49 and a put option with a strike price of $49. Both options have the same maturity. The call costs $3 and the put costs $4. Determine the trader's profit/loss formula for the following asset price S and draw the profit/loss diagram. (a) S

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