USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) …
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) XYZ CORP Exercise NYSE Date Price Price Close Calls OCT 85 16 3/4 101 11/16 OCT 90 12 101 11/16 OCT 95 7 5/8 101 11/16 Puts OCT 85 1/8 101 11/16 OCT 90 3/8 101 11/16 OCT 95 13/16 101 11/16 If you establish a long strap using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is trading at /16? (Keep 2 decimal places)