Question: A trader creates a bear spread by selling a six-month put option with a $25 strike price for $2.15 and buying a six-month put option
A trader creates a bear spread by selling a six-month put option with a $25 strike price for $2.15 and buying a six-month put option with a $29 strike price for $4.75.
What is the maximum profit on the spread?
What is the maximum loss on the spread?
What is the breakeven point?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
