Assume You Own Both a June 20 Put and a June

Multiple Choice

Assume you own both a June 20 put and a June 20 call on ALPO stock.Which one of the following statements is correct concerning your option positions? Ignore taxes and transaction costs.

A) Both a May 20 put and a May 20 call on ALPO will have higher values than your June 20 options.
B) An increase in the stock price will increase the value of your put and decrease the value of your call.
C) A decrease in the stock price will decrease the value of both of your options.
D) If put-call parity does not hold,you can profit from your positions even if ALPO stock sells for $20 a share.
E) The time premium on your June 20 put is equal to the time premium on a July 20 put on ALPO.