Question
You establish a straddle on Intel using September call and put options with a strike price of $50. The call premium is $4.25 and the
You establish a straddle on Intel using September call and put options with a strike price of $50. The call premium is $4.25 and the put premium is $5.00. |
Required: |
(a) | What is the most per share you can lose on this position? (Round your answer to 2 decimal places.) |
Maximum loss | per share |
(b) | What is your profit or loss per share if Intel is selling for $58 in September? (Input the amount as positive value. Round your answer to 2 decimal places.) |
(Click to select)ProfitLoss | per share |
(c) | At what stock prices (high price, low price) 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 | and |
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