A strangle consists of taking an equal position in a put option with strike X₁ and a call option with X₂ with same maturity, where X₁ < X₂. Suppose that the following options are available for trade:

Option	Strike	Price
Put	10	0.5
Call	12	0.3

(i) If an investor believes that the underlying asset price will remain approximately between the strike values (ie. between 10 and 12), then determine the required positions in the call and the put options.

(ii) Determine the maximum profit and the maximum loss that results from the strangle and the range of the terminal stock price that results in a profit for the trader.