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IBM shares currently sell for $154. Some of its 3-month European options, at varying strike prices, currently sell for the following premiums. Description Maturity Strike

IBM shares currently sell for $154. Some of its 3-month European options, at varying strike prices, currently sell for the following premiums.

Description Maturity Strike Premium
IBM 135 call 3 months 135 18.65
IBM 155 call 3 months 155 4.10
IBM 170 call 3 months 170 0.44
IBM 135 put 3 months 135 1.38
IBM 155 put 3 months 155 6.60
IBM 170 put 3 months 170 18.74

How would you set up a reverse straddle such that the profit would be as summarized in the graph below?

Group of answer choices

Long 155 call, long 155 put

Long 155 call, short 170 put

Long 155 put, short 170 put

Short 155 call, short 155 put

Long 135 call, short 155 call, long 170 call

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