A European call option with a strike price of $$125\mathrm{.}6$ costs $$10\mathrm{.}9.$ A European put option with the same expiration date and a strike price of $$63$ costs $$7\mathrm{.}4.$ For what range of stock prices would a strangle lead to a loss?

Question $11$ Answer

a$.$

$[55\mathrm{.}60$;$136\mathrm{.}50]$

b$.$

$[44\mathrm{.}70$;$143\mathrm{.}90]$

c$.$

$[107\mathrm{.}30$;$143\mathrm{.}90]$

d$.$

$[52\mathrm{.}10$;$133\mathrm{.}00]$

e$.$

$[44\mathrm{.}70$;$81\mathrm{.}30]$