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The current stock price is $100 per share. Strike Call Put 95 6.29 0.89 100 3.09 2.67 105 1.21 5.77 1) If you have a
The current stock price is $100 per share.
Strike | Call | Put |
95 | 6.29 | 0.89 |
100 | 3.09 | 2.67 |
105 | 1.21 | 5.77 |
1) If you have a straddle of one call and one put (with exercise price both at $100). What you can modify this straddle (add another option on it) if you are more optimistic of a good big news coming out soon? What you can modify this straddle if you are optimistic that a negative big news will come out soon? Just express what you will add on this straddle. (10 points)
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