Series 7 - General Securities Representative Exam
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A trader just closed out a short straddle position for a profit of 8.00. His total premium collected was 12.00 and he bought the straddle back at 4.00 to close the position. How much did he sell the straddle for?
Not Enough Data To Calculate
A
$800
B
$1,200
C
$2,400
D
Explanations
A short straddle involves simultaneously selling an at the money call and an at the money put. He collected 12.00 in premium which means he sold the straddle for $1200