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You buy one Huge-Packing August European call contract and one Huge-Packing August European put contract. Both options are at the money and are on 100
You buy one Huge-Packing August European call contract and one Huge-Packing August European put contract. Both options are "at the money" and are on 100 shares of Huge-Packing stock each. The call premium is $1.25, and the put premium is $4.50. The current price of the Huge-Packing stock is $50 per share. Disregarding time value of money considerations, at expiration, your highest potential loss from this position is $275$450unlimited$125$575
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