You think the price of a utility company stock, which is currently $80 is unlikely to change significantly over the next three months. To profit from this expectation, you sell a straddle position, with a call and put option, worth $7 and $8 per share, respectively, with three months to expiration,and a strike price of $80.
If at expiration the stock is trading at $71, what is your net profit on this position?
Remember that option contracts come in multiples of 100 shares.An asset has the following closing prices over 10 trading days:
time price
0 ~ 76
1 ~ 74
2 ~ 79
3 ~ 75
4 ~ 77
5 ~ 70
6 ~ 74
7 ~ 79
8 ~ 74
9 ~ 73
What is the latest value of the 5 day simple moving average?