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Construct a table that shows the pro?t from a straddle

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Reference no: EM133115078

Financial Engineering

A call with a strike price of $60 costs $6. A put with the same strike price and expiration date costs $4.

(a) Construct a table that shows the pro?t from a straddle for the cases (ST & 60) and (ST S 50)

(b) For what range of stock prices would the straddle lead to a loss?

Reference no: EM133115078

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