A strip is a portfolio created by buying one call and writing two puts with the same
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A strip is a portfolio created by buying one call and writing two puts with the same strike price and expiration date. A strap is similar to a strip except it involves long holding of two calls and short selling of one put instead. Sketch the terminal profit diagrams for the strip and the strap and comment on their roles in monitoring risk exposure. How are they compared to a bottom straddle?
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