Question: A trader creates a straddle by buying a call with a strike of $45 for $3.3 and a put with the same strike for $4.7.

A trader creates a straddle by buying a call with a strike of $45 for $3.3 and a put with the same strike for $4.7.

What is the initial investment?

For what range of prices of the underlying asset does the trader make a profit?

8.7.1

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