Question: On December21,2020,you purchased 100shares of ABC company at$11per share.You plan to sell your shares on December21,2021and are concerned aboutdownside risk.A put option on ABC stock

On December21,2020,you purchased 100shares of ABC company at$11per share.You plan to sell your shares on December21,2021and are concerned aboutdownside risk.A put option on ABC stock with an exercise price (K) of$40is currently priced(P)at$2per share.Also,two call options on ABC stock with exercise prices (K) of$40and$65are priced(C)at$2.5and$1.50per share,respectively.All options expire on December21,2021.What will be net profit/loss per shareon a long bull call spreadif the stock price is $20per share?

$14

-$1

$24

$34

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