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d . At what extra above expiration value is the put selling for? e . If you bought both the put and call in (
d At what extra above expiration value is the put selling for?
e If you bought both the put and call in a above and held them both to expiration, calculate your loss or profit on both the put and call if the price at expiration was $ per share.
f Graph contingency graph the payoffs for a long straddle at expiration stock price axis, option payoff on the axis at different stock prices at the expiration of a straddle.
Call Put
A call option on Company B common stock is worth $ with months before expiration. The strike price on the call is $ and the price per share is currently trading at $ per share. The put option at the same exercise price is worth $
a Is the call option in or out or the money?
b Is the put option in or out of the money?
c At what extra above expiration
value is the call selling for?
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