Find the breakeven stock prices at expiration explain why


(Concept Problem) Another variation of the straddle is called a strangle. A strangle is the purchase of a call with a higher exercise price and a put with a lower exercise price. Evaluate the strangle strategy by examining the purchase of the August 165 put and 170 call. As in the problems above, determine the profits for stock prices of 150, 155, 160, 165, 170, 175, and 180. Hold the position until expiration and graph the results. Find the breakeven stock prices at expiration. Explain why one would want to use a strangle.

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Finance Basics: Find the breakeven stock prices at expiration explain why
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