Suppose the investor adds a call to the long straddle, a transaction known as a strap. What will this do to the break even stock prices?
a. lower both the upside and downside breakevens
b. raise both the upside and downside breakevens
c. raise the upside and lower the downside breakevens
d. lower the upside and raise the downside breakevens
e. none of the above
Answer: A
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