Suppose option prices for a Dec. 31 expiration and an exercise price of 2300 are Call = 586 and Put = 386. Option prices for a Dec. 31 expiration and an exercise price of 2700 are Call = 426 and Put = 626. You believe the market has overestimated volatility in the S&P 500 index. Construct a synthetic short straddle in which you will have a profit with small changes in the S&P 500 index and a loss with large changes in the index. Graph your results in Excel. (Hint: your profit diagram will look like a V.)