If a Stock Is Selling for $33 and You Expect

question 9

Essay

If a stock is selling for $33 and you expect the price not to fluctuate, what are the potential profits and losses from writing a straddle if a call option at $35 sells for $3 and the put option at $35 sells for $4

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Definitions:

Real Estate Mortgages

A secured loan agreement where the borrower pledges real estate property as collateral for the loan, which the lender can seize if the loan isn't repaid.

Consumer Loans

Financial loans given to individual borrowers for personal, family, or household purposes, as opposed to business or commercial loans.

Unconscionable Conduct

Behavior that is considered extremely unfair, unethical, or unjust within a transaction or contractual agreement, often leading to the invalidation of the agreement.

Restatement

A secondary legal document that aims to inform and clarify the current state of the law, often used as a reference by courts.