Exhibit 22.7
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
GE Corporation has a put option selling for $2.90 and a call option selling for $1.95, both with a strike price of $29.00.
-Refer to Exhibit 22.7. What would the net value of a short straddle position be if the stock price at expiration is $35?
A)-36.15
B)-7.15
C)-$1.15
D)$1.15
E)$7.15

Question

Quizplus · Accepted Answer

The Answer of Exhibit 22.7
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
GE Corporation has a put option selling for $2.90 and a call option selling for $1.95, both with a strike price of $29.00.
-Refer to Exhibit 22.7. What would the net value of a short straddle position be if the stock price at expiration is $35?
A)-36.15
B)-7.15
C)-$1.15
D)$1.15
E)$7.15

Exhibit 22.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)