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40 and K2 60 and a short straddle with strike price K 50. Assume that Consider a long strangle with strike price K1 both have

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40 and K2 60 and a short straddle with strike price K 50. Assume that Consider a long strangle with strike price K1 both have the same time to maturity. a) Clearly determine the combined payoff. b) What other trading strategy has a similar payoff? 40 and K2 60 and a short straddle with strike price K 50. Assume that Consider a long strangle with strike price K1 both have the same time to maturity. a) Clearly determine the combined payoff. b) What other trading strategy has a similar payoff

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