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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