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yan [13]
3 years ago
8

You establish a straddle on Fincorp using September call and put options with a strike price of $80. The call premium is $7.00 a

nd the put premium is $8.50. a. What is the most you can lose on this position
Business
1 answer:
Nina [5.8K]3 years ago
6 0

Answer: $15.50

Explanation:

From the question, we are informed that someone establish a straddle on Fincorp using September call and put options with a strike price of $80 and that the call premium is $7.00 and the put premium is $8.50.

The most that can be lose on this position will be the addition of the call premium and the put premium. This will be:

= $7.00 + $8.50

= $15.50

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