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Determining the resultant strategy

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Reference no: EM133123724

An investor creates a trading position using a long position in a "strangle" and a short position in a "straddle." The strangle is created by a long call with strike $60 and a long put with strike $50- The straddle is created with a long call and a long put both with strike $55. What resulting trading position is created from this strategy? Plot the payouts of the strangle, straddle, and the resultant strategy in an excel spreadsheet.

Reference no: EM133123724

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