The market price of Simpson Structures stock has been relatively volatile and you think this

volatility will continue for a couple more months. Thus, you decide to purchase a two-month European

call option on this stock with a strike price of $32.50 and an option price of $1.80. You also purchase a

two-month European put option on the stock with a strike price of $32.50 and an option price of $.60.

What will your net prot or loss on these option positions be if the stock price is $34.20 on the day the

options expire? Ignore trading costs and taxes.