The market price of abc stock has been very volatile and, Ask an Expert

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The market price of ABC stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a one-month call option contract on ABC stock with a strike price of $25 and an option price of $1.16. You also purchase a one-month put option on ABC stock with a strike price of $25 and an option price of $0.76. What will be your total profit or loss on these option positions if the stock price is $25.75 on the day the options expire? (Round answer to 2 decimal places. Do not round intermediate calculations).

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92800844

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