An investor buys a two-month XYZ call option contract with a $25 strike price, and sells a two month XYZ call option contract with a $30 strike price. The premium is $2 for the call with the $25 strike price. The premium is $1 for the call with the $30 strike price. What is the maximum potential profit for this position?

Answer rating: 100% (QA)

This strategy is known as a bull call spread It involves buying a call option long call with a lower ... View the full answer