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You buy one call and one put with a strike price of $60 for both.  The call...

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Finance

You buy one call and one put with a strike price of $60 forboth.  The call premium is $5 and the put premium is $6.What is the maximum loss from this strategy? [Using positive numberfor profit, and negative number for loss]

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3.8 Ratings (475 Votes)
Strike price X 60 Call premium c 5 and Put premium p 6 If an investor buys call and put option with same strike price and same expiration then it is called as long straddle In this question one buys one call    See Answer
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You buy one call and one put with a strike price of $60 forboth.  The call premium is $5 and the put premium is $6.What is the maximum loss from this strategy? [Using positive numberfor profit, and negative number for loss]

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