Question: Exhibit 14.4 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider the following information on put and call options for Citigroup Strike Price Put Price

Exhibit 14.4 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Consider the following information on put and call options for Citigroup

Strike Price Put Price Call Price
$32.50 $2.85 $1.65

Refer to Exhibit 16.4. Calculate the payoffs of a short straddle at a stock price at expiration of $20 and a stock price at expiration of $45.

a. $21.65, $34.15
b. $6.35, $18.85
c. $8, $8
d. $29.65, $42.15
e. -$8, -$8

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