Question
You sold a 100 call for $5, and also sold a 100 put for $3 (Short straddle). Ignoring transaction costs, your maximum gains, losses and
You sold a 100 call for $5, and also sold a 100 put for $3 (Short straddle). Ignoring transaction costs, your maximum gains, losses and break-even points are respectively:
a) unlimited; -8; [95, 108]
b) 8; unlimited; [92, 108]
c) 8; -8; [92, 108]
d) unlimited; -8; [92, 105]
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
