Question: A Moving to another question will save this response. Question 4 Suppose we want to create a pay off diagram for a long strangle. Let's
A Moving to another question will save this response. Question 4 Suppose we want to create a pay off diagram for a long strangle. Let's assume the stock is currently trading at $60.00. We buy a call with a strike price of 565 for a premium of $3.13 and we buy a put with a strike price of $50 with a premium of $.88. What are the gains or losses (per share) from the call when the stock price is $70? A Loss of $5.00 OB. Gain of $5.00 Oc Gain of .87 D. Gain of $1.87 Moving to another question will save this response. MacBook Pro
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
