Fundamentals of Futures and options Markets (8th edition). Chapter 9, problem 26FQ.

I checked the solution and it says -$1200 and $800, why is it -$1200 and $800?

Explain with the help of the diagram that the investor's profit or loss caries with the stock prices over the next year. Also explain the changes if the investor buys 100 shares, shorts 200 call options, and buys 200 put options, with the help of the diagram. Stock price:Stock price determines if the stock is in-the-money (higher stock price involves greater intrinsic value) or out-of-the-money (lower option price). Put options: A put option gives the option holder right to sell the asset/security at a certain fixed price, where the buyer wants the stock prices to go down Call options: A call option gives the option holder right to purchase the security at a certain fixed price, where the buyer wants the stock prices to go up. By extracting the information: The price of the stock = $40 The price of a 1-year European put option = $7 The strike price of a l-year European put option = $30 The price of the l-year European call option = $5 The strike price of the 1-year European call option = $50 The number of shares the investor has bought = 100 The number of call options the investor has shorted = 100 The number of put options which the investor has bought=100 Comment Step 2 of 4 A Explain with the help of the diagram that the investor's profit or loss caries with the stock prices over the next year. When an investor buys 100 options, shorts 100 call options and buys 100 put options the profit of the investor varied with the increase or decrease in the stock price. When the stock price is less than $30, there occurs a loss of -$1200. When the stock price increases from $30 to $50, there is an increase in profit from -$1200 to $800. If the stock prices further increase beyond $50, then the profit will be $800