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The following information is available on company ABC. CALLS PUTS ABC MAR APR MAY MAR APR MAY 119 120 6 8 11 1 3 4

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The following information is available on company ABC. CALLS PUTS ABC 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 is the net profit of this straddle at the May maturity If the stock price then is $122? (Include any initial cash flows.) +$1200 -$1500 +1100 -$1300

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