Question: Construct a long straddle using the August 170 options. Hold until the options expire. Determine the profits and graph the results. Identify the breakeven stock
Construct a long straddle using the August 170 options. Hold until the options expire. Determine the profits and graph the results. Identify the breakeven stock prices at expiration, the maximum loss, and the maximum profit.
| Strike | Calls | Puts | ||||
| Jul | Aug | Oct | Jul | Aug | Oct | |
| 160 | 8.50 | 10.60 | 13.60 | 3.25 | 5.25 | 7.00 |
| 165 | 5.20 | 7.75 | 10.60 | 4.90 | 7.25 | 9.25 |
| 170 | 3.30 | 5.75 | 8.50 | 8.25 | 10.00 | 11.50 |
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