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 $20 and an option price of $1.65.You also purchase a 1-month put option on the stock with a strike price of $20 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 $15.40 on the day the options expire?
A) $365
B) $0
C) -$260
D) $200
E) $105
Correct Answer:
Verified
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