Question: a reverse straddle spread involves selling an equal number of calls and puts that are written on the same stock and have the same strike
a reverse straddle spread involves selling an equal number of calls and puts that are written on the same stock and have the same strike price x and time to expiration, let nc = 1, np = 1.
a) what are the profit ranges at expiration?
b) what is the maximum profit?
c) what is (are) the breakeven stock price(s)?
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