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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