Finance

[misshoo21]

Hello, This is my first time using this forum and I need help calculating the net profit of each option.

strike price is = $100
premium otion = $10

A) long position of call option if the stock price is $125 and if the stock price is $85

b) Short position of put option if the stock price is $125 and if the stock price is $85

[NoMoreExams]

Well for starters define what it means to have a long and short position. Then define payouts for calls and puts in each situation...