Answered: in the straddle option what is good to…

in the straddle option what is good to have an options with strike price equal, higher or less than current spot market, why?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 2Q

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in the straddle option what is good to have an options with strike price equal, higher or less than current spot market, why?

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