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Sara bought a straddle on Brent with the following characteristics: exercise price = $5, premium of call = $1, and the premium of put is
Sara bought a straddle on Brent with the following characteristics: exercise price = $5, premium of call = $1, and the premium of put is $1.50. Which of the following is TRUE if at this moment the price of Brent is $4.50 per share? a. The call is in-the-money and the put is out-of-the-money b. The call is in-the-money and the put is at-the-money c. Both the call and the put are in-the-money d. Both the call and the put are out-of-the-money e. The call is out-of-the-money and the put is in-the-money
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