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Unformatted text preview: premium. (2 points) 4) The breakeven points for those (OTM) Put and Calls at expiration. (2 points) 5) The maximum loss on the OTM Put & Calls, If youre long or short them (3 points) EXTRA CREDIT: 5 POINTS 1) What is the premium for the at-the-money straddle? 2) What is the premium for the out-of-the-money strangle using the options listed above? 3) Between what prices do you make money if you are short the 2 above...
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- Winter '07