Question
The following information is available on company ABC. CALLS PUTS ABC X MAR APR MAY MAR APR MAY 119 120 6 8 11 1 3
The following information is available on company ABC.
CALLS PUTS
ABC X MAR APR MAY MAR APR MAY
119 120 6 8 11 1 3 4
119 125 2 5 8 2 4 6
119 130 1 3 6 5 7 9
You create a (long) straddle using the May maturity and the strike price of $120. What are the breakeven stock prices at expiration for this straddle?
| $110 and $130
| ||
| $105 and $135
| ||
| $100 and $125
| ||
| $95 and $115
|
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Forecasting And Predictive Analytics With Forecast X
Authors: Barry Keating, J. Holton Wilson, John Solutions Inc.
7th International Edition
1260085236, 9781260085235
