X and Y are two friends. Since Y has earned a lot of profit from trading in financial derivative market, X is also considering speculating on Gamma…

X and Y are two friends. Since Y has earned a lot of profit from trading in financial derivative market, X is also considering speculating on Gamma Corporation's shares which is currently trading at 700 per share through taking positions in options in stocks of same company. Accordingly, X took following contract positions in the options on Gama Corporation's stock: (i) Purchasing one contract of 2-month call option with a premium of 35and an exercise price of 750. (ii) Purchasing one contract of 2-month put option with a premium of 25and an exercise price of 600. After some time, trading in Option Market and understanding the nitty-gritties of same, X being CEO in an organization advised his team to implement the concept of Financial Options in the Capital Budgeting decisions called 'Real Option'. Note: Contract size of each option contract is 100. Based on the above information answer the following questions: