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6. The market price of ABC stock has been very volatile and you think this...

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6. The market price of ABC stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a one-month call option contract on ABC stock with a strike price of $25 and an option price of $1.30. You also purchase a one-month put option on ABC stock with a strike price of $25 and an option price of $.3O. What will be your total profit or loss on these option positions if the stock price is $24.00 on the day the options expire? (Assuming that one option contract is for right to purchase and sell 400 shares. Therefore, an option price of $1.30 means it will cost you 130 per contract) a $180 b. -$140 c. -$100 d. so E-10 e. $180 Value of stockt Value of pu Net loss = 1-130x109) + (-0,50 425 -24,60 ) x 100 =-130 + (-10) Tolue deall - Stock Prlax Delta demount borrowed

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