SIE practice questionhardBreakeven points
For a long straddle (buy call and put, same strike $40, total premium $7), the breakeven points at expiration are:
- A$37 and $43
- B$40
- C$35 and $45
- D$47 and $33✓ Correct answer
Explanation
Why D — $47 and $33
Long straddle breakevens: strike + premium ($47) and strike - premium ($33).
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