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You are an investor who bought a stock of the XYZ company on 2 nd January 2008. You are concerned of the significant downside risk

You are an investor who bought a stock of the XYZ company on 2nd January 2008. You are concerned of the significant downside risk if the stock market tumbles and want to use options to hedge your exposure.

Date

 Strike Price Bid Price - Call Ask Price - Call Bid Price - Put Ask Price Put Stock Price
2-Jan-08 90 9.2 9.5 10.7 11 86.62

If XYZ stock price falls to $42.67 in year, what is the profit/loss of the straddle:

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