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What will be total profit or loss on option positions

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Reference no: EM132408169

The market price of a stock has been volatile, expect that volatility to continue.

Due to this belief you decide to purchase calls and puts to manage your exposure.

You purchase a one-month call option with a strike price of $25 and an option price of $1.30.

You also purchase a one-month put option with a strike price of $25 and an option price of $0.50.

What will be total profit or loss on these option positions if the stock price is $24.60 on the day the options expire?

Reference no: EM132408169

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