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Draw the profit and loss diagram for a straddle

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A call with an exercise price of X = $35 costs CE = $10. A put with the same exercise price and expiration date costs PE = $5.

(A.) Use this information to draw the profit and loss diagram for a straddle. For full credit, be sure to label the axes, the breakeven points, and ALL the intercepts on both axes.

Reference no: EM132774549

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