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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
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 ABC stock with a strike price of $25 and an option price of $1.30. You also purchase a one-month put option on ABC stock with a strike price of $25 and an option price of $.50. What will be your total profit or loss on these option positions if the stock price is $24.60 on the day the options expire?
-$180 |
-$140 |
-$100 |
$0 |
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