Considering taking the option positions

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Reference no: EM132185065

You are considering taking the following option positions. As part of your analysis cal- culate the stock price or prices on expiration above which or below which the positions will be profitable (ignore dividends and interest). The current stock price is $68.00.

(a) Buy a straddle with an exercise price of 70, where each option costs $5.00.

(b) Sell a straddle with an exercise price of 70, where each option costs $5.00.

Reference no: EM132185065

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