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The following information applies to Question 8 to Question 11. D Consider an option strategy consisting of the following European options with the same maturity

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The following information applies to Question 8 to Question 11. D Consider an option strategy consisting of the following European options with the same maturity T and on the same underlying asset with price St: Strike Price Number Option Call 20 6 1 Call 25 3 -1 Put 35 4 -1 Put 40 7 1 4 pts Question 8 Determine the profit/loss for this strategy for all possible terminal values of Sr by drawing a table, or explicitly writing the profit/loss in each terminal ST region. Question 9 Calculate the maximum profit and the maximum loss for this strategy. Question 10 For what values of ST does this strategy result in profit, and for values of ST does it result in a loss? D Question 11 Under what conditions would this strategy be appropriate

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