Answer:
$665
Explanation:
Call premium is $1.70
Put premium is $4.95
If you buy call contract and put contract, the highest loss you can incur is the premium paid for the call option and put option.
Normally, every option contain 100 shares. So, the highest potential loss from this situation is as follows:
= 100 * [$1.70 + $4.95]
= 100 * $6.65
= $665
So, your highest potential loss from this position is $665.
