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Most of the examples in this section use the following premiums,which are based on the Black-Scholes formula for a stock currently selling at $100, a 6-month expiration date, a 4% effective rate for a 1/2 year period and no stock dividends.
Strike price = $90, 100, 110
Call = $16.36, 10.35, 6.11
Put = $2.90, 6.50, 11.88
Question: Suppose Jim is the writer of the straddle purchased by Tom in Example 1. Jim's profit is $8.00 at expiration of the straddle in 6 months. What was the spot price at expiration?
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