Establish a straddle on walmart

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Reference no: EM133056020

You establish a straddle on Walmart using September call and put options with a strike price of $94. The call premium is $7.70 and the put premium is $8.45.

a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.)

b. What will be your profit or loss if Walmart is selling for $99 in September? (Input the amount as positive value. Round your answer to 2 decimal places.)

Reference no: EM133056020

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