Consider a long position in a 100-strike straddle added to a short position in a 90/110-strike strangle. The underlying is a stock index. This is equivalent to:
A) A stock index contract that pays the absolute return on the index up to $\pm 10 \%$ and then pays nothing if the return is outside the range $\pm 10 \%$ .
B) A long position in a 90-strike straddle plus a long position in a 110-strike straddle plus a short position in a 100-strike straddle.
C) A short position in a 90-100-110-strike butterfly call spread plus a zero-coupon bond of face value 10.
D) A long position in a 90-100-110-strike butterfly call spread plus a long put at 90 and long call at 110.

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The Answer of Consider a long position in a 100-strike straddle added to a short position in a 90/110-strike strangle. The underlying is a stock index. This is equivalent to:
A) A stock index contract that pays the absolute return on the index up to $\pm 10 \%$ and then pays nothing if the return is outside the range $\pm 10 \%$ .
B) A long position in a 90-strike straddle plus a long position in a 110-strike straddle plus a short position in a 100-strike straddle.
C) A short position in a 90-100-110-strike butterfly call spread plus a zero-coupon bond of face value 10.
D) A long position in a 90-100-110-strike butterfly call spread plus a long put at 90 and long call at 110.

Consider a Long Position in a 100-Strike Straddle Added to a Short