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Mr. Smart thinks the price of a stock is going to be extremely volatile after its release of quarterly earnings, so Mrs. Smart decides to
Mr. Smart thinks the price of a stock is going to be extremely volatile after its release of quarterly earnings, so Mrs. Smart decides to construct a strangle strategy using a put with strike price of $25.00 and a call with strike price of $30.00. The bid and ask prices of the put are $2.28 and $2.32. The bid and ask prices of the call are $4.10 and 4.20. The break-even points for the trading strategy are: $_____ , and $_____.
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