What is profit or loss if the underlying stock at expiration

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Reference no: EM131313338

1. You buy a put with an exercise price of $75 for $5 and a call with an exercise price of $75 for $5, what is your profit or loss if the underlying stock at expiration is selling at $65?

a. -$5

b. $0

c. $5

d. $10

2. A writer sells a put with a strike price of $70 for $3, what is his profit or loss if the underlying stock at expiration is selling at $65?

a. -$5

b. -$3

c. -$2

d. $3

Reference no: EM131313338

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