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On the market there is a call option with strike price of 120 and premium 12. There is also a put option with the premium
On the market there is a call option with strike price of 120 and premium 12. There is also a put option with the premium of 7 and strike price 90. Both options are issued on 100 units of the same underlying instrument. An investor has already bought both of this option. a) What will be the result of this strategy if at the time of exercising it the price of underlying will be equal to 100. b) Please indicate the possible profits, risk and expectations on price of underlying for this strategy
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