On the EA date, although PLAY announced its earnings higher than analysts' consensus estimate ($1.45 per share actual vs. $1.26 estimated), the executives provided a somewhat pessimistic view for the next several quarters due to recession concerns. Its share price dropped to $31.92 accordingly. If you exercise your options on the EA date, what is your profit or loss (per share) for your straddle with a strike price of $30? What is your profit or loss for your straddle with a strike price of $35?

Answer rating: 100% (QA)

To calculate the profit or loss per share for your straddle options with different strike prices 30 and 35 on the EA Earnings Announcement date we nee... View the full answer