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XYZ CORP Exercise NYSE Date Price Price Close Calls OCT 85 16 3/4 101 11/16 OCT 90 12 101 11/16 OCT 95 7 5/8
XYZ CORP Exercise NYSE Date Price Price Close Calls OCT 85 16 3/4 101 11/16 OCT 90 12 101 11/16 OCT 95 7 5/8 101 11/16 Puts OCT 85 1/8 101 11/16 OCT 90 3/8 101 11/16 OCT 95 13/16 101 11/16 a. If you establish a long straddle using the options with an 85-exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16? b. If you establish a long strap using the options with an 85-exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16? c. If you establish a long strip using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
