Suppose a put is added to a straddle. This overall transaction is called a strip. Determine the profit at expiration on a strip if the stock price at expiration is $36.
a. -$129
b. $1,416
c. $429
d. $1,384
e. none of the above
Answer: B
Suppose a put is added to a straddle. This overall transaction is called a strip. Determine the profit at expiration on a strip if the stock price at expiration is $36.
a. -$129
b. $1,416
c. $429
d. $1,384
e. none of the above
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