What is the holding period return

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Suppose you buy a straddle: a portfolio made up of a European call and of a European put option on the same non-dividend paying stock, with the same exercise price of X=$100, and an expiration date of T=1 year. The price of the call is $5 and that of the put is $10. Suppose that the stock price at expiration is equal to $105. What is the holding period return (HPR) on your option portfolio?

Reference no: EM133110379

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