Feedback for Consider an investor holding two options position on same underlying and with the same maturity date, First one is 100 number of Long Put the stock with a strike price $25 and a second position in 50 numbers of Short Call with a strike price of $10. At the maturity date, the underlying price is $15 Calculate the payoff at the maturity.
Option prices can never trade below 0.
Hence, on expiry date, 10CE would be 0. And hence no payoff. (Simply Loss of premium)
So it’s simply 1000 pay off on put.
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