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1. Given the assumption that the exercise price in a straddle is midway between the two exercise prices in a strangle, demonstrate which trading position
1. Given the assumption that the exercise price in a straddle is midway between the two exercise prices in a strangle, demonstrate which trading position is created by combining a long straddle with a short strangle, when both have the same time to maturity? Clearly show your working and final profit and loss diagram
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