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Several Rumors Concerning Wyslow Stock Have Started Circulating

Question 39

Multiple Choice

Several rumors concerning Wyslow stock have started circulating.These rumors are causing the market price of the stock to become increasingly volatile.Given this situation,you decide to buy both a one-month put and a one-month call option on this stock with an exercise price of $15.You purchased the call at a quoted price of $.20 and the put at a price of $2.10.What will be your total profit on these option positions if the stock price is $6 on the day the options expire?


A) $30
B) $670
C) $690
D) $710
E) $1,110

Correct Answer:

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