What will be your net profit or loss on these option


Several rumors concerning Value Rite stock are causing the market price of the stock to be quite volatile. Given this situation, you decide to buy both a one-month European $25 put and a one-month European $25 call on this stock. The call price per share is S0.60 and the put price per share is $2.10. Each option contract includes 100 shares. What will be your net profit or loss on these option positions if the stock price is $18 on the day the options expire? Ignore trading costs and taxes.

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Financial Management: What will be your net profit or loss on these option
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