Calculate the straddles profit or loss if just prior to


You buy a straddle on SD whose exercise price on the call and the put is $20. The premium on the call option is $0.15, and the premium on the put option is $11.00. Calculate the straddle’s profit or loss if just prior to expiration SD’s stock price is $10 per share.

a. $1.15

b. ($1.15)

c. ($11.15)

d. $11.15

e. $11.00

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Financial Management: Calculate the straddles profit or loss if just prior to
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