Calculate profit or loss on both positions simultaneously

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Reference no: EM131509895

You write a put on Kane with an exercise price of $3.50 and a premium of $1.00. At the same time you buy a call on Kane with an exercise price also at $3.50 and a premium of $1.25. Calculate the profit or loss on both positions simultaneously if just prior to option expiration Kane’s stock price is $3.00.

a. ($1.25)

b. ($0.50)

c. ($1.75)

d. $0.00

e. ($0.75)

Reference no: EM131509895

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