Question

You establish a straddle on Walmart using September call and put options with a strike price of $68. The call premium is $5.15 and the put premium is $5.90.

a. What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.)

Maximum loss $ 11.05

b. What will be your profit or loss if Walmart is selling for $77 in September? (Input the amount as positive value. Round your answer to 2 decimal places.)

Loss of $ 2.05

c. At what stock prices will you break even on the straddle? (Input your answers from highest to lowest to receive credit for your answers. Round your answers to 2 decimal places.)

Break even prices $_____ and $_____

*Need help with question C only.

Answer 1

c)