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You are an investor who would like to create a combination by taking positions in THREE OPTIONS from the table below. You would like the
You are an investor who would like to create a combination by taking positions in THREE OPTIONS from the table below. You would like the profit from this strategy to match the profit diagram provided below. Option Type Strike Price Option Price Call 20.00 10.00 Call 25.00 5.00 Put 30.00 7.00 Profuloss 28 2 25 30 Spot Price Describe the combination of THREE OPTIONS that will yield the profit strategy shown above. Note that you can take Long or Short positions in the options. Demonstrate using a payoff-table that your strategy is correct. Be sure to show all your work (i.e. supporting calculations)
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