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 net payoff per share (enter 4.00 , not 400 , for one spread - the gross payoff of the spread minus the cost of the spread) when the stock price in six months is $33 ? Please enter your answer as a number with two decimal places (no dollar sign), and include a negative sign if it is a loss
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
