Suppose you are long 100 contracts on AMZN 1-year 25-delta strangle (25-delta call + 25-delta put). How much will your option position increase in value if AMZN stock price goes down by $1 (use negative number if value decreases; a contratct is 100 shares).

Answer rating: 100% (QA)

To calculate the impact of a 1 decrease in AMZN stock price on your option position we need to consi... View the full answer