Quantitatively illustrate how a strangle can be constructed using any number of the options given above. Clearly indicate what options you use, draw the profit diagram of the position you create, and numerically identify the axis intersection points and maximum/minimum payoffs.

Suppose it is the beginning of trade on April 19, 2016 and you observe the following list of options written on the BIST30 index, all of which are due to expire in nine months (approximately 180 trading days). The expiration date payoffs of these options are 0.02 times the regular intrinsic value of each option. The level of the BIST30 index at the time was 1050. Answer the following questions using this data. Option C C2 C3 P P2 P3 Type Call Call Call Put Put Expiry 30/12/2016 30/12/2016 30/12/2016 30/12/2016 30/12/2016 30/12/2016 Strike 1100 1050 1000 1100 1050 1000 Ref 1050 1050 1050 1050 1050 1050 Ratio 0.02 0.02 0.02 0.02 0.02 0.02 Price 1.50 2.00 2.60 1.45 1.00 0.65 Put Suppose it is the beginning of trade on April 19, 2016 and you observe the following list of options written on the BIST30 index, all of which are due to expire in nine months (approximately 180 trading days). The expiration date payoffs of these options are 0.02 times the regular intrinsic value of each option. The level of the BIST30 index at the time was 1050. Answer the following questions using this data. Option C C2 C3 P P2 P3 Type Call Call Call Put Put Expiry 30/12/2016 30/12/2016 30/12/2016 30/12/2016 30/12/2016 30/12/2016 Strike 1100 1050 1000 1100 1050 1000 Ref 1050 1050 1050 1050 1050 1050 Ratio 0.02 0.02 0.02 0.02 0.02 0.02 Price 1.50 2.00 2.60 1.45 1.00 0.65 Put