2. You can create a short Strangle by selling a Gamma, Inc. April put option with an exercise price of $50 and selling a Gamma, Inc. April call option with an exercise price of $55. a. Show the profit diagram as of the April expiration date. At what Gamma share prices at option expiration date would you have a profit? At what Gamma share prices at option expiration date would you have a loss? (Approximate prices are OK, but you must show your working out). b. You can create a short Straddle by selling a put and a call with the same exercise price. What can be the reason for constructing a Strangle rather than a Straddle. DATA Gamma Stock Price is $50.75 Gamma Options Prices: Option Call Premium Put Premium April 45 $0.38 April 50 $3.25 $2.19 April 55 $0.88 $4.88 April 60 $0.31 $9.50 April 65 $0.13