Question
A long strangle is created by buying a slightly out of the money put and a slightly out of the money call with the same
A long strangle is created by buying a slightly out of the money put and a slightly out of the money call with the same expiration date.
The market price of MSFT is $184.00.
The June 5 $195.00 calls have a premium of $1.70
The June 5 $175.00 calls have a premium of $3.70
a) What is the most an investor can lose on this position?
b) What does the price of MSFT need to be for the investor to break even?
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The Art Of M And A A Merger Acquisition Buyout Guide
Authors: Stanley Foster Reed, Alexandria Lajoux , H. Peter Nesvold
4th Edition
0071714952, 9780071714952
