Multiple Choice
Due to technological and market developments,the price of Beta stock has become quite volatile.Given this,you decide to buy two one-month put option contracts and two one-month call option contracts on this stock with an exercise price of $15.You purchased the calls at a quoted price of $.40 and the puts at a price of $2.30.What will be your total profit on these positions if the stock price is $29 on the day the options expire?
A) $1,890
B) $2,720
C) $2,260
D) $1,130
E) $1,360
Correct Answer:
Verified
Correct Answer:
Verified
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