Question: John buys Call and Put options with the same strike price. Please read the following information. Call option premium: $0.02/ Put option premium: $0.01/ Strike

John buys Call and Put options with the same strike price. Please read the following information.

Call option premium: $0.02/

Put option premium: $0.01/

Strike price: $1.08/

Option contract size: 50,000

If John waits until the expiration date to exercise, what is his profits (or losses) per contract with the exchange rate of $1.08/ the expiration date?

a. Losses: $1,500 b. Profits: $1,000 c. Losses: $1,000 d. Profits: $500

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