III. (15 marks) A month ago, when AAPL was trading at $132.2…
III. (15 marks) A month ago, when AAPL was trading at $132.20/share you thought that AAPL would make a big move either up or down, so you created an option “long straddle” by: buying 100 put options with a strike price of $132.00 when the option was quoted at $1.37 buying 100 call options with a strike price of $132.00 when the option was quoted at $2.45 The options expire today when the value of AAPL stock is now $142.90. Ignoring other trading costs and taxes, what is the net profit or loss on this straddle trade?
Read Details