The market price of Wild Ride stock has been very volatile, and you think this volatility will continue for a few weeks. Thus, you decide to purchase a 1-month call option contract with a strike price of $45 and an option price of $1.15. You also purchase a 1-month put option on the stock with a strike price of $50 and an option price of $.95. What will be your total profit or loss on all the transactions related to these option positions if the stock price is $44.40 on the day the options expire?

Answer rating: 100% (QA)

To calculate your total profit or loss from the option positions we need to consider both the call a... View the full answer