You think the price of AMZN stock, which is currently $900 is likely to change...
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You think the price of AMZN stock, which is currently $900 is likely to change significantly over the next three months, you are just not sure which direction. So you buy a long strangle position, with a call and put option, worth $12 and $2 per share, respectively, three months to expiration, and strike prices of 910 (call) and 890 (put).
If at expiration AMZN is trading at $869, what is your net profit per share on this position?
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