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Problem 2. Consider two contracts A and B. A: Long 1 call option with 90-dollar strike price, short 2 call options with 100-dollar strike price,

Problem 2. Consider two contracts A and B. A: Long 1 call option with 90-dollar strike price, short 2 call options with 100-dollar strike price, long 1 call option with 110-dollar strike price. B: Long 1 put option with 90-dollar strike price, short 2 put options with 100-dollar strike price, long 1 put option with 110-dollar strike price. All options are for 1 share of the same stock. Let S be the stock price at the expiration date. Let A92 and B92 be the payoffs for contract A and B, respectively, if S is 92 dollars. Let A102 and B102 be the payoffs for contract A and B, respectively, if S is 102 dollars. Calculate A92 - B92 + 2(A102 - B102).

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