Question: Both a call and a put option are currently traded on stock AXT. Both options have a strike price of $90 and maturity (T) of

Both a call and a put option are currently traded on stock AXT. Both options have a strike price of $90 and maturity (T) of three months. The call premium (C0) is $2.75, the put premium (P0) is 4.12, and the underlying stock price (S0) is $89.50. What will be your profit or loss if you take a long position on the put option and the underlying stock price at the option maturity (St) becomes $87? Show calculation.

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