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You want to buy AAPL stock (at the April 22 quoted price), however, you are aware that there is a potential for valuations to take

  1. image text in transcribedYou want to buy AAPL stock (at the April 22 quoted price), however, you are aware that there is a potential for valuations to take a nose dive if the reopening of the economy occurs prematurely. Your strategy is to buy 1,000 shares of AAPL at the 4/22 closing price, and buy 10 contracts on the July 260 put.
    1. What option strategy is this?
      1. Long straddle
    2. Solve for your profit (include the price you pay for AAPL stock) for the following AAPL stock prices at expiration: $225.00, $250.00, $275.00, $300.00, $325.00.
    3. Given the range of possible AAPL prices, what is the range of potential returns on this investment strategy?
    4. What is the range of potential returns on a similar strategy in which you buy the July 270 put, instead of the July 260 put?
* AutoSave A Svo ANO 13 - Read-Only - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Tell me Read Only To save a copy of this document, click Duplicate. Listed Options Quotes AAPL (4/22/20) APL do $270.00 Duplicate Puts SES ESS 0. 18 .. Paar 7 of 7 26 of 2509 words English (United States) P

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