Creates straddle by buying call option and put option

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Reference no: EM131520637

A call with a strike price of $60 costs $6. A put with the same strike price and expiration date costs $4. A trader creates a straddle by buying a call option and a put option, and holds it until maturity. For which of the following ranges of the stock price at maturity, the profit of the strategy is positive?

A. $50 ≤ ST ≤ $70

B. $54 ≤ ST ≤ $64

C. ST ≤ $50 and ST ≥ $70

D. ST ≤ $54 and ST ≥ $64

E. ST ≤ $56 and ST ≥ $66

Reference no: EM131520637

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