Mary expects XYZ stock price will differ a lot from $80 but not sure whether it...
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Mary expects XYZ stock price will differ a lot from $80 but not sure whether it will be smaller or larger. She wants to create a straddle. Calculate her initial cash flow. Strike price $80 $90 Call option price $8.85 $6.98 Put option price $3.38 $5.35 If it's a cash inflow, enter a positive number. If it's a cash outflow, enter a negative number. Mary expects XYZ stock price will differ a lot from $80 but not sure whether it will be smaller or larger. She wants to create a straddle. Calculate her initial cash flow. Strike price $80 $90 Call option price $8.85 $6.98 Put option price $3.38 $5.35 If it's a cash inflow, enter a positive number. If it's a cash outflow, enter a negative number.
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To create a straddle Mary will buy one call option and one ... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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