Question: You establish a straddle on Walmart using September call and put options with a strike price of $50. The call premium is $4.25 and the
You establish a straddle on Walmart using September call and put options with a strike price of $50. The call premium is $4.25 and the put premium is $5
A) What is the most you can lose on this position?
B) What will be your profit or loss if Walmart is selling for $58 in September?
C) At what stock prices will you break even on the straddle?
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