Question: 1. You write a put on Kane with an exercise price of $3.50 and a premium of $1.00. At the same time you buy a

1. You write a put on Kane with an exercise price of $3.50 and a premium of $1.00. At the same time you buy a call on Kane with an exercise price also at $3.50 and a premium of $1.25. Calculate the profit or loss on both positions simultaneously if just prior to option expiration Kanes stock price is $3.00.

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