Let a certain stock be selling at Rs 87. An investor feels that significant change in price is un-likely in the next 3 months. He observes market price of 3 month calls as: Strike Call Price(Rs.) Price(Rs.) 85 14 90 10 95 7 The investor decided to go long in two calls each with strike price Rs. 85 and Rs. 95 and writes two calls with strike price Rs. 90. Graphically represent the trading strategy and give payoff for the expected stock prices Rs 83 and Rs. 92. 14