What is the cost of building this strangle

Reference no: EM133332044

Question: Stock COX is currently trading at $40. You plan to build a strangle with strike prices of $38 and $42 respectively. The risk-free rate is $5 per annum (continuous compounding), the volatility of the stock's return is 25% per annum, and the time to maturity is two months. What is the cost of building this strangle?

Reference no: EM133332044

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What is the cost of building this strangle : Stock COX is currently trading at $40. You plan to build a strangle with strike prices of $38 and $42 respectively. The risk-free rate is $5 per annum

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