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
Q40: Which one of these will increase both
Q42: RTF stock is currently priced at $21.06
Q42: You purchased three WXO 15 call option
Q43: Robotic stock is selling for $68.90 a
Q44: Hilltop stock has a current market price
Q47: The 3-month $40 options on Leeway Motors
Q49: The 1-year $35 options on Water Kingdom
Q50: If you express a firm in terms
Q55: IOU stock is selling for $39.40 a
Q57: You own stock in a firm that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents