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12. Explain how you can implement the following cash flows at the option maturity. (e.g. option types, long/short, exercise prices etc.) 1) strap (Note that

12. Explain how you can implement the following cash flows at the option maturity. (e.g. option types, long/short, exercise prices etc.) 1) strap (Note that the slope on the right line is steeper) Profit K S. Strap 3 2) strangle Profit K K2 S

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