这道题

问题如下：

Based on Exhibit 2, Strategy 1 is profitable when the share price at expiration is closest to:

选项：

$63.00.

$65.24.

$69.49.

解释：

A is correct.

The straddle strategy consists of simultaneously buying a call option and buying a put option at the same strike price. The market price for the $67.50 call option is $1.99, and the market price for the $67.50 put option is $2.26, for an initial net cost of $4.25 per share. Thus, this straddle position requires a move greater than $4.25 in either direction from the strike price of $67.50 to become profitable. So, the straddle becomes profitable at $67.50 – $4.26 = $63.24 or lower, or $67.50 + $4.26 = $71.76 or higher. At $63.00, the profit on the straddle is positive.