Question: 2. Refer to the Short Strangle Data Disney (DIS)Contract Size = 100 shares Position Size = 3 Chart Start Price = $140.00 Chart Price Increment

2. Refer to the Short Strangle Data

Disney (DIS)Contract Size = 100 shares

Position Size = 3

Chart Start Price = $140.00

Chart Price Increment = $0.50

Chart Price Stop = $172.00

. Strike Stock Premium

Call $158 $163 $4

PUT $154 $163 $2

A. What is the profit(loss) payoff of the Short Strangle if the future stock price is $166.50?

B. What is the lower breakeven point on the short strangle?

C. What is the profit (loss) payoff for the Short Strangle if the future stock price is $142.50?

D. What is the profit (loss) payoff for the Short Strangle if the future stock price is $155.50?

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