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An investor creates a trading position using a long position in a strangle and a short position in a straddle. The strangle is created by
An investor creates a trading position using a long position in a strangle and a short position in a straddle. The strangle is created by a long call with strike $60 and a long put with strike $50. The straddle is created with a long call and a long put both with strike $55. What resulting trading position is created from this strategy? Plot the payouts of the strangle, straddle, and the resultant strategy in an excel spreadsheet.
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