The market price of southern press stock has been, Ask an Expert

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The market price of Southern Press stock has been relatively volatile and you think this volatility will continue for a couple more months. Thus, you decide to purchase a two-month European call option on this stock with a strike price of $45 and an option price of $3. You also purchase a two-month European put option on the stock with a strike price of $45 and an option price of $0.66.

What will be your total net profit or loss on these option positions if the stock price is $47.74 on the day the options expire? Ignore trading costs and taxes.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92739614

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