Question

In: Finance

You sold a 105 call for $8 and sold a 95 put for $6 (Short Strangle)....

You sold a 105 call for $8 and sold a 95 put for $6 (Short Strangle). Ignoring transaction costs, your maximum gains, losses and break-even points are respectively:

Question 2 options:

1)	14; unlimited; [81, 119]

2)	8; unlimited; [85, 114]

3)	14; -14; [95, 105]

4)	unlimited; -14; [92, 114]

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Question 4

You bought 150 call for $6 and bought a 150 put for $5 (Long straddle). Ignoring transaction costs, your maximum gains, losses and break-even points are respectively:

Question 4 options:

1)	11; unlimited; [145, 155]

2)	11; -11; [139, 161]

3)	unlimited; -8; [144, 156]

4)	unlimited; -11; [139, 161]

Expert Solution

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jeff jeffy answered 2 years ago

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