A call option on a stock with a strike price of $50 costs $2. A put option on the same stock with a strike price of $45 costs $3. They both expire in 4 month.

(a) How can these two options be used to create a strangle?

(b) What is the initial investment?

(c) Construct a table showing how payoff and profit varies with S_T in 4 month for the strangle you created. The table should looks like this:

Stock Price	Payoff	Profit
ST 45
45 < ST < 50
ST 50