Products & Risks第 37 / 125 题
An investor buys 1 XYZ 50 call for 4 and 1 XYZ 50 put for 3 (a long straddle). What are the two breakeven points?
a.$57 and $43
b.$54 and $46
c.$50 and $50
d.$61 and $39
解析
For a long straddle, the total premium is 7 points (4 + 3). The upside breakeven is the strike plus total premium (50 + 7 = 57) and the downside breakeven is the strike minus total premium (50 - 7 = 43). The stock must move outside 43 to 57 for a net profit.
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