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An investor buys a 1 month call option with a strike price of $110 for $4 a 1 month put option with a strike price

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An investor buys a 1 month call option with a strike price of $110 for $4 a 1 month put option with a strike price of $90 for $5 The current price of the underlying equals $100. Which of the following statements are true? (choose all that are correct) This trade is profitable if the underlying's price increases by $11 over the next month This trade is profitable if the underlying's price increases by $20 over the next month This trade bets on high volatility The most the investor can lose is $9 This trade is profitable if the underlying's price decreases by $15 over the next month

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