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Consider the following information on 6 month put and call options for Citigroup: Strike Price Put Price Call Price $32.50 $2.85 $1.65 You believe that
Consider the following information on 6 month put and call options for Citigroup:
Strike Price | Put Price | Call Price |
$32.50 | $2.85 | $1.65 |
You believe that Citigroup's stock price move dramatically over the next six months and you decide to create a straddle position based on your belief. What would be your profit/loss from your strategy if Citigroup trades for $38 when the options expire?
185 | ||
-100 | ||
100 | ||
-185 |
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