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You establish a straddle on Walmart using September call and put options with a strike price of $98. The call premium is $7.90 and the put premium is $8.65. a. What is the most you can lose on this position

User Kito
by
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1 Answer

7 votes

Answer:

$16.55

Step-by-step explanation:

To get the answer to this question we will first write out the existing data.

Strike price = $98

The call premium = $7.90

The put premium = $8.65

You are required to find the most you can lose on this position.

To get this you add up the call premium of $7.90 and the put premium of $8.65.

= 8.65 + 7.90

= $16.55

This is the most or maximum you can lose on the position.

User Ryano
by
6.0k points