Question: Construct a bear money spread using the October 165 and 170 calls. Hold the position until the options expire. Determine the profits and graph the

Construct a bear money spread using the October 165 and 170 calls. Hold the position until the options expire. Determine the profits and graph the results. Identify the breakeven stock price at expiration and the maximum and minimum profits. Discuss any special considerations associated with this strategy?

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Buy the October 170 at 6 Sell the October 165 at 810 100Max0 S T 170 6 Max0 S T 165 810 If you ... View full answer

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\begin{tabular}{llllllll} \hline & & Calls & & & Puts & \\ Strike & Jul & Aug & Oct & Jul & Aug & Oct \\ \hline 160 & 6.00 & 8.10 & 11.10 & 0.75 & 2.75 & 4.50 \\ 165 & 2.70 & 5.25 & 8.10 & 2.40 &...

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