What is the HPR on the straddle trade

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Reference no: EM132065840

Premise: straddle trade on a stock. Its buying both a Call & Put option on the same asset. at the time you execute this info on the trade is available.

Price is $40 p/share

Call optn: strike price of $41 p/share premium of $3.16 p/share

Put optn: strike price of $41 p/share, premium of $4.25 p/share

A straddle trade is realized at this point and maintained until the options expire. When the options expire the price = $39 p/share What is the HPR on the straddle trade?

Reference no: EM132065840

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