Question: PLEASE EXPLAIN WITHOUT USING EXCEL FUNCTIONS The current price quote is $12. Try to form a straddle using the money options and calculate the dollar

PLEASE EXPLAIN WITHOUT USING EXCEL FUNCTIONS

The current price quote is $12. Try to form a straddle using the money options and calculate the dollar amount net profit/loss of your straddle when the price becomes $12.3.

*$0.3 is incorrect

Current price quote is $12. Try to form straddle using at the money options and calculate the dollar amount net profit/loss of your straddle when price becomes $12.3. Option Strike Premium Call 1 E1 = $12 c1 = $0.6 Call 2 E2 = $13 c2 = $0.1 Put 1 E1 = $12 p1 = $0.6 Put 2 E2 = $13 p2 = $1.5 $0.3 -$0.3 -$0.9 $1.2

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