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Six-month European at-the money call and put options on a stock with strike price $50 cost $5 and $4, respectively. You sell a straddle. At

Six-month European at-the money call and put options on a stock with strike price $50 cost $5 and $4, respectively. You sell a straddle. At maturity the spot price of the stock is $61. What is the overall gain or loss on the straddle?

a Loss of $2

b Loss of $9

c Gain of $11

d Gain of $2

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