The market price of ABC stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a one-month call option contract on this stock with a strike price of $25 and an option price of $1.50. You also purchase a one-month put option on this stock with a strike price of $25 and an option price of $.70. What will be your total profit on these option positions if the stock price is $24.60 on the day the options expire?

Multiple Choice

• $220

• $180

  Correct

• $140

• $100

• $140

  Incorrect