Question

Bottom Straddle: Long a CE and a PE on the same K and Maturity
KP=	KC=	$70	L = $69
PP=	$4	CP=	$3
Stock Price	Long a Put	Long a Call	Profits
$50
$52
$54
$56
$58
$60
$62
$64
$66
$68
$70
$72
$74
$76
$78
$80
$82
$84
$86
$88
$90

Answer 1

rate positively ..

	Profit/Loss on long put = Max of (strike price - Spot price,0)-premium paid
	Profit/Loss on long call = Max of (spot price-Strike price,0)-premium paid
	KP =	KC =	$70	L = $69
	PP =	$4	CP =	$3
		max(70-spot price,0)-4	max(spot price -70,0)-3
	Stock Price	Long a Put	Long a Call	Profits
	$50	$16	($3)	$13
	$52	$14	($3)	$11
	$54	$12	($3)	$9
	$56	$10	($3)	$7
	$58	$8	($3)	$5
	$60	$6	($3)	$3
	$62	$4	($3)	$1
	$64	$2	($3)	($1)
	$66	$0	($3)	($3)
	$68	($2)	($3)	($5)
	$70	($4)	($3)	($7)
	$72	($4)	($1)	($5)
	$74	($4)	$1	($3)
	$76	($4)	$3	($1)
	$78	($4)	$5	$1
	$80	($4)	$7	$3
	$82	($4)	$9	$5
	$84	($4)	$11	$7
	$86	($4)	$13	$9
	$88	($4)	$15	$11
	$90	($4)	$17	$13