What will be your total profit or loss on these option


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 $1.16. You also purchase a one-month put option on ABC stock with a strike price of $25 and an option price of $0.76. What will be your total profit or loss on these option positions if the stock price is $25.75 on the day the options expire? (Round answer to 2 decimal places. Do not round intermediate calculations).

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What will be your total profit or loss on these option
Reference No:- TGS02757660

Expected delivery within 24 Hours