What is the total payoff on the speculator options portfolio

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A speculator is long 5 call option contracts and is long 7 put option contracts on IBM stock. The calls have a strike price equal to $110 per share and the puts have a strike price equal to $126 per share. All of the options expire at date T, are European exercise, and have a contract size equal to 100 shares of stock.

If IBM's stock price on date T is equal to $118.22 per share, what is the total payoff on the speculator's options portfolio?

Reference no: EM132826089

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