You buy a straddle, which means you purchase a put and a call with the same strike

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You buy a straddle, which means you purchase a put and a call with the same strike price. The put price is $2.80 and the call price is $4.20. Assume the strike price is $75. What are the expiration date profits to this position for stock prices of $65, $70, $75, $80, and $85? What are the expiration date profits for these same stock prices? What are the break-even stock prices?

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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