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The table below provides the premiums for one-year European options on an underlying asset with a current spot price of 170. Strike Price Call Put
The table below provides the premiums for one-year European options on an underlying asset with a current spot price of 170.
Strike Price | Call | Put |
150 | 35.83 | 7.80 |
160 | 29.84 | 11.28 |
170 | 24.60 | 15.50 |
180 | 20.11 | 20.48 |
190 | 16.30 | 26.13 |
The continuously compounded risk-free annual rate of interest is 5.5%. Find the cost of a straddle constructed using at-the-money options.
Group of answer choices
42.37
40.10
Please show your work.
9.10
9.10
40.10
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