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The following 1-month European put and call options are available on Ameson Ltd. Amesons current share price is $680. Strike ($) Call ($) Put ($)
The following 1-month European put and call options are available on Ameson Ltd. Amesons current share price is $680.
Strike ($) | Call ($) | Put ($) |
670 | 33.40 | 21.72 |
680 | 28.22 | 26.52 |
690 | 23.62 | 31.90 |
At the expiration of the options, Amesons share price turns out to be $705. What is the profit/loss of a long butterfly strategy (you do not need to account for the time value of money)?
A. $0.58 loss
B. $0.58 profit
C. None of the other answers is correct.
D. $1.01 profit
E. $1.01 loss
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