You buy a call option and buy a put option on bond X. The strike price of the call option is $90 and the strike price of the put option is $105. The call option premium is $5 and the put option premium is $2. Both options can be exercised only on their expiration date, which happens to be the same for the call and the put.
If the price of bond X is $100 on the expiration date, your total payoff is $ and then total profit from the options portfolio is $ .
Call option gives the long the right to buy the option at the strike price. Call option is exercised when the spot price > Strike price.
Put option gives the long the right to sell the option at the strike price. Put option is exercised when the spot price < Strike price.
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