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  3. 2. (25 points) a trader buys a call option with a

2. (25 points) A trader buys a call option with a strike price of $40...

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2. (25 points) A trader buys a call option with a strike price of $40 and a put option with a strike price of $50. Both options have the same maturity. The call costs $4 and the put costs $6. a) Construct a table showing the payoffs and net profits for all possible price ranges. b) Draw a diagram showing the variation of the trader's profit with the asset price

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