Consider the following portfolio:

Long 0 puts with strike price 98.0

Short 1 puts with strike price 98.0

Long 0 calls with strike price 100.5

Short 1 calls with strike price 100.5

Complete the following payoff table. What choice corresponds to the last row of the table? Position ST 98.0 98.0 < ST 100.5 ST > 100.5 portfolio

Answers:

-98 + S_T, 0, S_T - 100.5

98 - S_T, 0, S_T - 100.5

98 + S_T, 0, - S_T + 100.5

-98 + S_T, 0, - S_T + 100.5

None of the above