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You buy a straddle (a call and a put on the same underlying asset with the same exercise price and with the same time to
You buy a straddle (a call and a put on the same underlying asset with the same exercise price and with the same time to expiration) XYZ whose exercise price on the call and put is $35. The premium on the call is $2.25 and the premium on the put is $8.00. Calculate the straddle's profit or loss if just prior to expiration XYZ's stock price is $10 per share.
$14.75 | ||
$15.00 | ||
$17.00 | ||
-2.25 |
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