Exhibit 22.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information on put and call options for Citigroup $$\begin{array} { l c c }
\text { Strike Price } & \text { Put Price } & \text { Call Price } \
\hline \$ 32.50 & \$ 2.85 & \$ 1.65
\end{array}$$
-Refer to Exhibit 22.4. Calculate the payoffs of a long straddle at a stock price at expiration of $20 and a stock price at expiration of $45.
A)$6.35, $18.85
B)$29.65, $42.15
C)$21.65, $34.15
D)$8, $8
E)-$8, -$8

Question

Exhibit 22.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information on put and call options for Citigroup $$\begin{array} { l c c } 
\text { Strike Price } & \text { Put Price } & \text { Call Price } \
\hline \$ 32.50 & \$ 2.85 & \$ 1.65
\end{array}$$
-Refer to Exhibit 22.4. Calculate the payoffs of a long straddle at a stock price at expiration of $20 and a stock price at expiration of $45.
A)$6.35, $18.85
B)$29.65, $42.15
C)$21.65, $34.15
D)$8, $8
E)-$8, -$8

Quizplus · Accepted Answer

The Answer of Exhibit 22.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information on put and call options for Citigroup $$\begin{array} { l c c } 
\text { Strike Price } & \text { Put Price } & \text { Call Price } \
\hline \$ 32.50 & \$ 2.85 & \$ 1.65
\end{array}$$
-Refer to Exhibit 22.4. Calculate the payoffs of a long straddle at a stock price at expiration of $20 and a stock price at expiration of $45.
A)$6.35, $18.85
B)$29.65, $42.15
C)$21.65, $34.15
D)$8, $8
E)-$8, -$8

Exhibit 22 Strike Price Put Price Call Price $32.50$2.85$1.65\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 32.50 & \$ 2.85 & \$ 1.65\end{array} Strike Price $32.50​ Put Price $2.85​ Call Price $1.65​​

Exhibit 22 $\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 32.50 & \$ 2.85 & \$ 1.65\end{array}$