You buy a straddle on SD whose exercise price on the call and the put is $20. The premium on the call option is $0.15, and the premium on the put option is $11.00. Calculate the straddle’s profit or loss if just prior to expiration SD’s stock price is $10 per share.
a. $1.15
b. ($1.15)
c. ($11.15)
d. $11.15
e. $11.00