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Based on the prediction of the stock market, you decide to buy both a three-month put and a three-month call option on this stock with
Based on the prediction of the stock market, you decide to buy both a three-month put and a three-month call option on this stock with an exercise price of $13. You purchased the call at a quoted price of $0.20 and the put at a price of $2.10. What will be your total profit or loss on these positions if the stock price is $5 on the day the options expire?
-$230
$570
$1,070
$890
$870
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