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36 37.50 39 To demonstrate the answer, alter the view of the Raw Position (see Exhibit 1-10): 10*36C/39P Guts Strangles going for 3.60 by applying 10 Short 3.00 Boxes using the BoxTool (+10 36/39 Boxes are embedded in the position).

One can much more easily answer a new question, and this time get it right: What amount of money is the most one can lose with 10*36 Puts bought at .40 and 10*39 Calls bought at .20, making a total investment of $600 (10 x (.40 + .20) x 100 shares)?

The minimum value for this position is not "zero" as human nature forces us to believe. Rather it is $3000 (10x 3.00 x 100 shares). The 3.00 Box will hold that value all the way to expiration. EXHIBIT 1-10

10*36C/39P Guts Strangles is Synthetically Equivalent to 10*36P/39C Strangles Because it Contains 10 Embedded 36/39 Box Spreads

10*36C/39P Guts Strangles is Synthetically Equivalent to 10*36P/39C Strangles Because it Contains 10 Embedded 36/39 Box Spreads

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