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The market price of Monsanto stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to
The market price of Monsanto stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a 1-month call option contract with a strike price of $36 and an option price of $1.44. You also purchase a 1-month put option contract on the stock with a strike price of $36 and an option price of $.52. What will be your total profit or loss on all the transactions related to these option positions if the stock price is $34.20 on the day the options expire?
$16 | ||
-$16.00 | ||
$34.20 | ||
-$144 | ||
$128 |
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