(Solution) - a Graph changes in wealth AW vs changes in the -(2025 Original AI-Free Solution)

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(a) Graph changes in wealth, AW, vs. changes in the prices of the underlying security, ? S, for a portfolio where you sell one call option and sell one put option (both the same X, T, ?, and rf). Would this be a good strategy if you have private information that leads you to expect the instantaneous variance of the underlying security will increase?
(b) Graph ?W against ?S for a portfolio where you buy a call and sell a put. Would this be a good strategy if you expect an increase in the instantaneous variance?