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In expectation of stagnate price, you sold a at-the-money put option and at the same time...

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Finance

In expectation of stagnate price, you sold a at-the-money putoption and at the same time sold a atthe-money call option withcommon exercise prices of $15. Option premium at $3 each. Yourstrategy is known as a_____? Please draw out the payoff-profile ofthis strategy and clearly state all key info. What is the maximum $would you make with this strategy?

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In expectation of stagnate price, you sold a at-the-money putoption and at the same time sold a atthe-money call option withcommon exercise prices of $15. Option premium at $3 each. Yourstrategy is known as a_____? Please draw out the payoff-profile ofthis strategy and clearly state all key info. What is the maximum $would you make with this strategy?

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