Question: Consider: (a) Stock trades for $100; (b) Calls with exercise prices of $90, $100, and $110 trade at prices of $16.99, $10.18, and $7.44 respectively.

Consider:

(a) Stock trades for $100;

(b) Calls with exercise prices of $90, $100, and $110 trade at prices of $16.99, $10.18, and $7.44 respectively.

If a person buys a $90 call and writes a $110 call, what is her profit if the stock price is 91.88 at maturity? Please answer correctly up to two decimal places.

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