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You believe that the market will be volatile in the near future, but you do not feel particularly strongly about the direction of the movement.

You believe that the market will be volatile in the near future, but you do not feel particularly strongly about the direction of the movement. With this expectation, you decide to buy both a call and a put with the same exercise price and the same expiration on the same underlying stock trading at $28. You buy one call option and one put option on this stock, both with an exercise price of $25. The premium on the call is $4 and the premium on the put is $1. Determine the value at expiration and the profit for your strategy when the price of the stock at expiration is $35. 10; 5 4; -1

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