Assume the risk-free rate is 0%. What is your total dollar profit (loss) if you buy a 50 December put contract on XYZ, Inc., quoted at $2.15 AND buy a 49 December call contract on XYZ, Inc. at $3.50 and the ending price of XYZ is:
a. $28
b. $38
c. $48
d. $58
e. $68
Hint: It is easiest to compute each option’s profit or loss and then add them together.