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You establish a short strangle on a company using December call and put options. The call option has a strike price of $55 and the
You establish a short strangle on a company using December call and put options. The call option has a strike price of $55 and the put option has a strike price of $45. The premium on the call option is $4.80 and the premium on the put option is $5,40. a. What will be your profit or loss if the company's stock is selling for $46 in December? (Loss amounts should be indicated by a minus sign. Round your answer to 2 decimal places.) Profit/Loss b. What will be your profit or loss if the company's stock is selling for $57 in December? (Loss amounts should be indicated by a minus sign. Round your answer to 2 decimal places.) Profit/Loss $ c. At what stock prices will you break even on the straddle? (Input your answers from highest to lowest to receive credit for your answers. Round your answers to 2 decimal places.) Break even prices High Price $ and Low Price $
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