What is your net profit on position

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Reference no: EM131934142

You think the price of a utility company stock, which is currently $80 is unlikely to change significantly over the next three months. To profit from this expectation, you sell a straddle position, with a call and put option, worth $7 and $8 per share, respectively, with three months to expiration,and a strike price of $80.

If at expiration the stock is trading at $71, what is your net profit on this position?

Remember that option contracts come in multiples of 100 shares.

Reference no: EM131934142

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