Exhibit 22.4
Use the Information Below for the Following Problem(S)
Consider the following information on put and call options for Citigroup
$$\begin{array} { c c c }
\text { otrike Price } & \text { Put Price } & \text { Call Price } \
\hline\$ 32.50 & \$2.85 & \$1.65
\end{array}$$
-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
 $$\begin{array} { c c c } 
\text { otrike Price } & \text { Put Price } & \text { Call Price } \
\hline\$ 32.50 & \$2.85 & \$1.65
\end{array}$$
-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

At S = 20
Net payoff on a long straddle = (32.5 - 20)- 1.65 - 2.85 = 8
At S = 45
Net payoff on a long straddle = (45 - 32.5)- 1.65 - 2.85 = 8

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

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