2022 Boston Mock B - Derivatives - Straddle - on same strike?

CFA Level III Derivatives
#1
  1. A straddle strategy is implemented by buying closer to ATM puts and ATM calls. Cost of closest to ATM put option (i.e., $39.50 strike) is $2.22. Cost of ATM call option (i.e., $40.50 strike) is $1.81. Cost of each straddle option = $2.22 + $1.81 = $4.03

I thought the straddle would be implemented on the same strike - please help

#2

You’re correct.

#3

Thanks so much Magician

#4

My pleasure.