The market price of Simpson Structures 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 $32.50 and an option price of $1.80. You also purchase a two-month European put option on the stock with a strike price of $32.50 and an option price of $.60. What will your net profit or loss on these option positions be if the stock price is $34.20 on the day the options expire? Ignore trading costs and taxes.
A) -$130
B) -$120
C) -$70
D) -$60
E) $10

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The Answer of The market price of Simpson Structures 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 $32.50 and an option price of $1.80. You also purchase a two-month European put option on the stock with a strike price of $32.50 and an option price of $.60. What will your net profit or loss on these option positions be if the stock price is $34.20 on the day the options expire? Ignore trading costs and taxes.
A) -$130
B) -$120
C) -$70
D) -$60
E) $10

The Market Price of Simpson Structures Stock Has Been Relatively