The market price of Wild Ride stock has been very volatile,and you think this volatility will continue for a few weeks.Thus,you decide to purchase a 1-month call option contract with a strike price of $45 and an option price of $1.15.You also purchase a 1-month put option on the stock with a strike price of $50 and an option price of $.95.What will be your total profit or loss on all the transactions related to these option positions if the stock price is $44.40 on the day the options expire?
A) $315
B) $290
C) −$210
D) $350
E) −$105
Correct Answer:
Verified
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