Question
You SOLD a straddle by selling a call option and a put option on a stock with the same strike price.The cost of the call
You SOLD a straddle by selling a call option and a put option on a stock with the same strike price.The cost of the call is $3.6, the cost of the put is $2.49, strike price is $25.65.On maturity day, if stock trades for $23.8, what is your profit?Assuming each option is on 1share of stock.Keep your answer to 2decimal places.
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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