Option traders often refer to "straddles" and "butterflies." Here is an example of each: Straddle: Buy call with exercise price of $100 and simultaneously buy put with exercise price of $100 Butterfly: Simultaneously buy one call with exercise price of $100, sell two calls with exercise price of $110, and buy one call with exercise price of $120. Draw position diagrams for the straddle and butterfly, showing the payoffs from the investor's net position. Each strategy is a bet on variability. Explain briefly the nature of each bet. 5. (1 pt.) Options Three six-month call options are traded on Digital Organics stock: Exercise Price $90 $100 $110 Call Option Price S5 $11 S15 How would you make money by trading in Digital Organics options? Option traders often refer to "straddles" and "butterflies." Here is an example of each: Straddle: Buy call with exercise price of $100 and simultaneously buy put with exercise price of $100 Butterfly: Simultaneously buy one call with exercise price of $100, sell two calls with exercise price of $110, and buy one call with exercise price of $120. Draw position diagrams for the straddle and butterfly, showing the payoffs from the investor's net position. Each strategy is a bet on variability. Explain briefly the nature of each bet. 5. (1 pt.) Options Three six-month call options are traded on Digital Organics stock: Exercise Price $90 $100 $110 Call Option Price S5 $11 S15 How would you make money by trading in Digital Organics options