(Financial Options) A trader buys a call option with a strike price of $35 and a put option with a strike price of $32. Both options have the same maturity. The call costs $2 and the put costs $3.

Questions:

• Discuss and draw a graph that describes the profit for the trader with different asset prices. Ignore time value in your analysis
• Describe shortly the vision that the trader should have which supports the chosen strategy
• Now assume, that the trader would buy call and put options with the same strike price and maturity, whereas the strike is between 32 and 35? How would the traders vision differ from the one discussed above?