Assume that you believe that a certain stock will face a high volatility in the near future, since the company will rele

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answerhappygod
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Assume that you believe that a certain stock will face a high volatility in the near future, since the company will rele

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Assume that you believe that a certain stock will face a high
volatility in the near future, since the company will release their
annual report in two weeks time, and you think that it will contain
some surprises. You don't know if it will be good or bad
surprises,why you create a straddle by purchasing a call and a put
option with the same strike price 95. The put option premium is 4.3
and the call option premium is 7. What is the profit of this
portfolio if the stock price at the time of expiration is 80?
(Answer with 2 decimals and use dot as a decimal separator.)
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