Question: A trader creates a bear spread by selling a two-month European put option with a $50 strike price for $10 and buying a two-month European
A trader creates a bear spread by selling a two-month European put option with a $50 strike price for $10 and buying a two-month European put option with a 56 strike price for $16. What is the ned profit from that position if the stock price in two months is $35? A. 52 B. 54 C $8 0.510 E. 516 F. 518 G. 520 H.525 A trader creates a beat specad by adlliog a two-month European put option with a 550 strike price for 510 and buyg a fwo-month European ran option with a 560 strike price for 516 . What is the net profit from that position if the stock price in two months is 535? A. -52 B. 54 c. 5.5 0. 510 E. 516 F. 518 6. 520 H.525
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