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Why with 'long strangle', the loss is decreased if price remains unchanged, compared with 'long straddle'? Why the loss sustained by investors would be the
Why with 'long strangle', the loss is decreased if price remains unchanged, compared with 'long straddle'?
Why the loss sustained by investors would be the double premium ( long strangle) which is same as the loss ( long straddle) equal to double premium.
Market price of asset Premium- LOSS (c) Long call+ long put Profit Price expectations Market price of asset Net (double premium Loss c) Long put + long call Profit Price expectations Market p of asset ! Net (double) premium LossStep by Step Solution
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