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Recent rumors are causing the market price of ABC stock to become increasingly volatile. Given this situation you decide to buy both a one month
Recent rumors are causing the market price of ABC stock to become increasingly volatile. Given this situation you decide to buy both a one month put and a one month call option on this stock with an exercise price of $15. You purchased the call at a quoted price of $0.20 and the put price for $2.10. What will be your total profit on these option positions if the stock price is $6 on the day the option expires.
A) $670
B) $710
C) $30
D) $690
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