Answer: C. $500 profit
Step-by-step explanation:
The total premium you will receive from selling both bearing in mind that contracts are per 100 each will be;
= (Call Premium + Put Premium) * 100
= (4 + ( 3 * 2)) * 100
= $1,000
As the prices went up, the only option that will be exercised will be the call option. The loss made when this happens will be;
= ( New Stock price - Exercise price) * 100
= ( 95 - 90) * 100
= $500
Total Profit (loss) made = Premium - loss
= 1,000 - 500
= $500