You think the price of amzn stock which is currently 900 is, Ask an Expert

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You think the price of AMZN stock, which is currently $900 is likely to change significantly over the next three months, you are just not sure which direction. So you buy a long straddle position, with a call and put option, worth $22 and $24 per share, respectively, three months to expiration, and a strike price of $900. If at expiration AMZN is trading at $813, what is your net profit on this position? Remember that option contracts come in multiples of 100 shares.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92706722

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