Compute the price of a straddle on the stock

Reference no: EM131964466

Question: The current spot price of a stock is $68 and the volatility of the stock is 14%. The risk-free rate is 1%. Compute the price of a straddle on the stock with strike $70 and expiration in 3 weeks built from a European call and put. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131964466

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