Series 7 - General Securities Representative Exam

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A trader sold a straddle for 16.00. It expired worthless. What is the trader's profit or loss?

$1600 loss
A
$1600 gain
B
$800 loss
C
Not enough information
D

Explanations

He collected $1600 in premium. The options expired worthless; which is great for the premium seller. He made $1600

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