All the transactions related to these option positions

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Reference no: EM131992672

1. The market price of Fintech 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 $35 and an option price of $1.82. You also purchase a 1-month put option on the stock with a strike price of $35 and an option price of $.91. What will be your total profit or loss on all the transactions related to these option positions if the stock price is $38.68 on the day the options expire?

$112 -$86.00 -$127.00 $95 $108

2. Kim Garment stock is selling for $24.53 a share, the $25 puts are priced at $1.05, and the $25 calls are priced at $0.81. How much will you receive if you write twenty $25 put option contracts?

$2,760.00 $3,840.00 $3,240.00 $1,720.00 $2,100.00

Reference no: EM131992672

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