What is the net profit for the buyer of the call

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European call and put options with 3 months of expiration exist with strike price $30 on the same underlying stock. The call is priced at $3.5, the put is priced at $1.25, while the underlying is currently selling for $28.5.

a) What is the net profit for the buyer of the call if the stock price at expiration is $36?

b) What is the net profit for the seller of the call if the stock price at expiration is $38?

c) What is the net profit for the buyer of the put if the stock price at expiration is $24?

d) What is the net profit for the seller of the put if the stock price at expiration is $22?

e) What is the net profit if one buys both the call and the put, and at expiration the stock price is $39?

f) What is the net profit if one buys both the call and the put, and at expiration the stock price is $22.5?

Reference no: EM131962521

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