What is the profit for the option writer from the strategy


Problem

An option writer sells a "Strangle" with strike prices of $33 for the put and $41 for the call on BHP shares, that costs $0.26 and $0.06 respectively. What is the profit (loss) for the option writer from this strategy if BHP's share price at expiry of the options is $45?

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Finance Basics: What is the profit for the option writer from the strategy
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