Suppose you bought 2 calls and 1 put option a strap each, Ask an Expert

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Suppose you bought 2 calls and 1 put option (a strap) each with a contract size of 125,000. If the put has a strike price of $1.25/ and a premium of $0.015, and the calls have a strike of $1.25/e with a premium of $0.02 each, what is your overall net position (net profit) if the spot rate rises to $1.2940/? (Hint, consider the options separately and add the net proft).

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92821546

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