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7. Elaine came up with a strangle strategy of NVIDIA's option as follows: she longs a call at the strike price of $450, and long

image text in transcribed 7. Elaine came up with a strangle strategy of NVIDIA's option as follows: she longs a call at the strike price of $450, and long a put at the strike price $400; both has the same expiry date. The premium of call contract is $74, and the premium of put contract is $52. She bought 100 shares of each contract. At the expiration date, the price of NVIDIA's stock ends up at $500. The current stock price is 426.92 . What is Elaine's total payoff from this option strategy? a) -2200 b) -4900 c) -7600 d) -12800

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