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Consider the spread consisting of 1 long call with strike 90, 1 long put with strike 100, and 1 short call with strike 120 1.
Consider the spread consisting of 1 long call with strike 90, 1 long put with strike 100, and 1 short call with strike 120 1. 1. Graph the payoff of this spread. 2. What is the minimum premium you would expect to pay for this spread? 3. This shape of payoff is called the "short put ladder". Recreate this shape by using puts only (the graph should look the same up to a shift in the vertical direction)
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