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  3. a. draw the payoff diagram for a short position in

a. Draw the payoff diagram for a short position in a put option with a...

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a. Draw the payoff diagram for a short position in a put option with a strike of X1 and a long position in a call option with a strike of X2. (2 points) Portfolio Payoff + X1 X2 Stock Price b. A straddle is a portfolio that is long both a call and a put, with both options having the same strike price and expiration date. Draw the payoff diagram for a straddle, assuming the strike price of the options is X3. (4 points) Portfolio Payoff + X3 Stock Price

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