Question: ts Incorrect Question 3 0 / 2.5 pts Part I. Today's price of Microsoft (MSFT) is $150 per share. You are neither bullish nor bearish
ts Incorrect Question 3 0 / 2.5 pts Part I. Today's price of Microsoft (MSFT) is $150 per share. You are neither bullish nor bearish about MSFT, but you believe that the share price will not move by a lot in the near future. To implement your view, you decide to sell a straddle with one month until maturity. An option dealer provides you quotes on one-month MSFT options. For a call option with a strike of $150, the dealer quotes you a price of $4.32. For a put option with a strike of $150, the dealer quotes you a price of $4.32. The c.c. risk-free rate is zero. What is the profit to the short straddle if MSFT trades at $200 per share in one month? (Round answer to two decimal places.) 41.36
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