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What will be net profit-loss per share on a long straddle

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Question - On December 21, 2020, you purchased 100 shares of ABC company at $11 per share. You plan to sell your shares on December 21, 2021 and are concerned about downside risk. A put option on ABC stock with an exercise price (K) of $40 is currently priced (P) at $2 per share. Also, two call options on ABC stock with exercise prices (K) of $40 and $65 are priced (C) at $2.5 and $1.50 per share, respectively. All options expire on December 21, 2021. What will be net profit/loss per share on a long straddle if the stock price is $10 per share?

A. $15.5

B. $25.5

C. -4.5

D. $45.5

Reference no: EM132766157

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