Answered

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You purchase 200 shares of a stock at a price of $70 per share. You purchase 200 call options on the
stock with exercise price of $72 and a call premium of $5.75 per call option. You also write (sell) 300
put options on the same stock with exercise price of $68 and put premium of $2,87 per put option.
All the options expire on the same date. Calculate the profit on your entire strategy (portfolio) at the
expiration of the contracts if the Stock price at that time is $81.50. (Assume you sell all your shares
the date that the options expire.)

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