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2. What is a straddle, and why would an investor choose to buy one? Assume an investor buys a $190 straddle on HD. At what
2. What is a straddle, and why would an investor choose to buy one? Assume an investor buys a $190 straddle on HD. At what stock prices at expiration will that position be profitable? Assume at expiration HD sells for $154: what will the % return be on the straddle? How much $ profit or loss will the investor earn per share?
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