You establish a straddle on walmart using september call


You establish a straddle on Walmart using September call and put options with a strike price of $49. The call premium is $5.75 and the put premium is $5.00.

a. What is the payoff on this position if Walmart is selling for $49 in September? $

b. What will be your payoff if Walmart is selling for $36.75 in September? $

c. What will be your payoff if Walmart is selling for $53.95 in September? $

d. What is the cost of this investment strategy? $

e. What will be your percent return if Walmart is selling $53.95 in September? percent

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Financial Management: You establish a straddle on walmart using september call
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