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An investor creates a strangle: she buys a European put having exercise price $80 and a European call having exercise price $90. Suppose at the
An investor creates a strangle: she buys a European put having exercise price $80 and a European call having exercise price $90. Suppose at the exercise date the underlying security price turns out to be $86. What is the gain/loss for this investor?
explain how this is a loss for the investor. thank you.
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