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The market price of XYZ stock has been very steady and you think this situation will continue for a few weeks.
The market price of XYZ stock has been very steady and you think this situation will continue for a few weeks. Thus, you decide to make a one-month call option contract on this stock with a strike price of $50 and an option price of $2.50. You also make a one-month put option contract on this stock with a strike price of $50 and an option price of $1.70. What will be your total profit on these option positions if the stock price is $51 on the day the options expire?
A) −$320
B) $320
C) −$80
D) -$180
E) $420