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Mary expects XYZ stock price will differ a lot from $80 but not sure whether it will be smaller or larger. She wants to create
Mary expects XYZ stock price will differ a lot from $80 but not sure whether it will be smaller or larger. She wants to create a straddle. Calculate her initial cash flow.
Strike price Call option price Put option price
$80 . $8.16 . $3.39
$90 $6.98 $5.35
If it's a cash inflow, enter a positive number. If it's a cash outflow, enter a negative number.
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