Question: You establish a straddle on Walmart using September call and put options with a strike price of $ 9 1 . The call premium is

You establish a straddle on Walmart using September call and put options with a strike price of $91. The call premium is $7.55 and the put premium is $8.30.
Required:
a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.)
b. What will be your profit or loss if Walmart is selling for $93 in September? (Input the amount as positive value. Round your answer to 2 decimal places.)
c-1. What is the Break-even price for lower bound? (Round your answer to 2 decimal places.)
c-2. What is the Break-even price for upper bound? (Round your answer to 2 decimal places.)

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a Most you can lose The total cost of the straddle is the sum of the call and put premiums Total cos... View full answer

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