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Solve for these two questions... Question 1 2 . 2 3 : A trader sells a strangle by selling a 7 - month European call
Solve for these two questions...
Question :
A trader sells a strangle by selling a month European call option with a strike price of $ for $ and selling a month European put option with a strike price of $ for $ For what range of prices of the underlying asset in months does the trader make a profit?
Question :
Three put options on a stock have the same expiration date and strike prices of $ $ and $ The market prices are $ $ and $ respectively. Explain how a butterfly spread can be created. Construct a table showing the profit from the strategy. For what range of stock prices would the butterfly spread lead to a loss?
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