An investor buys for $1 a five-month call with a strike price of $30 and sells for $3 a five-month call with a strike price of $26. What are the profits from this bear spread strategy? Draw the graph on the profits.

Answer rating: 100% (QA)

To calculate the profits from the bear spread strategy we need to consider the premiums paid and received for the call options Given Buying a call with a strike price of 30 for 1 long call Selling a c... View the full answer