1. A trader creates a long strangle with put options with a strike price of $55 per share, and call options with a strike of $75 per share by buying a total of 20 option contracts (10 put contracts and 10 call contracts). Each contract is written on 100 shares of stock. The put option is worth $7 per share, and the call option is worth $5 per share.
   1. What is the value of the strangle at maturity as a function of the then stock price?

b. What is the profit of the strangle at maturity as a function of the then stock price?