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Part 4: Straddle F) Consider buying a call and a put option, both with a strike price of $25 and the same expiration. Fill in

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Part 4: Straddle F) Consider buying a call and a put option, both with a strike price of $25 and the same expiration. Fill in the table for the payoffs of the straddle (10 points) Range of Payoff stock price Payoff from a straddle Payoff from call from put 0 K-S Sy - K 0 Total payoff K - Sy Sy - K Sr K G) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the straddle. Label the axes and chart title (10 points) G 2G) Straddle Payoff Long call option Long put option K= K= 7 9 1 2 3 Stock Price (ST) Total Payoff $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 4 5 8 9 0 1 2 H) Straddle Plot 3 4 5 -6 7 18 59 0 1 2 NO COV

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