Question: A slight variation of a straddle is a strap, which uses two calls and one put. Construct a long strap using the October 165 options.

A slight variation of a straddle is a strap, which uses two calls and one put. Construct a long strap using the October 165 options. Hold the position until expiration. Determine the profits and graph the results. Identify the breakeven stock prices at expiration and the minimum profit. Compare the results with the October 165 straddle?

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Buy two October 165 calls at 810 each Buy one October 165 put at 675 1002Ma... View full answer

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