An investor has purchased both a call option and a put option on the same stock. The call option has a strike price of $30 and the put option has a strike price of $40. If the current stock price is $28, what payoff (per share) will the investor receive if the options were exercised?
A) $8.00
B) $10.00
C) $12.00
D) $14.00
E) $18.00

Question

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The Answer of An investor has purchased both a call option and a put option on the same stock. The call option has a strike price of $30 and the put option has a strike price of $40. If the current stock price is $28, what payoff (per share) will the investor receive if the options were exercised?
A) $8.00
B) $10.00
C) $12.00
D) $14.00
E) $18.00

An Investor Has Purchased Both a Call Option and a Put