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An investor is trying to form a strangle position, In particular, the exercise price of the put option is higher than the exercise price of

An investor is trying to form a strangle position,

In particular, the exercise price of the put option is higher than the exercise price of the call option.

Graph what happens to this investor's profit pattern.Briefly discuss the advantages and disadvantages of this investor's strategy compared to the strategy on page

19

of the lecture slide.

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