= a a The spot price of NFLX is So = 500. Every six month there is a 60% chance it will increase by 100 and a 40% chance it will decrease by 100. Let X be the payoff of a 1-year NFLX European straddle made of a call and put each with strike 510. Compute E[X], SD(X). Why is it impossible for this price model of NFLX to be accurate? = a a The spot price of NFLX is So = 500. Every six month there is a 60% chance it will increase by 100 and a 40% chance it will decrease by 100. Let X be the payoff of a 1-year NFLX European straddle made of a call and put each with strike 510. Compute E[X], SD(X). Why is it impossible for this price model of NFLX to be accurate