Multiple Answer Question 3

Question # 00114358 Posted By: yolypeiba Updated on: 10/08/2015 05:29 PM Due on: 10/08/2015
Subject Economics Topic Financial Markets Tutorials:
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The market price of ZYX stock has been volatile and you expect that volatility to continue for a few weeks based on recent news. Due to this belief you decide to purchase calls and puts to manage your exposure. You purchase a one-month call option with a strike price of $25 and an option price of $1.30. You also purchase a one-month put option with a strike price of $25 and an option price of $0.50. What will be your total profit or loss on these option positions if the stock price is $24.60 on the day the options expire?
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  1. Tutorial # 00108774 Posted By: neil2103 Posted on: 10/08/2015 05:50 PM
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    The solution of Multiple Answer Question 3...
    Book1.xlsx (8.34 KB)

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