Consider the following spread Security Qty Bid Ask SPDR S P 500 Trust ETF $469 52 $469 62 SPY JAN 14 2022 457 0 CALL 15 $3 55 $3 60 SPY JAN 14 2022 460 0 CALL 15 $2 20 $2 20 a What type of spread is this b What is the spread 's possible payoff c How much initial capital is required for this spread ...

a This is a Bear Call Spread comprising of Selling 15 lo ...

Consider the following spread: Security Qty Bid Ask SPDR S&P 500 Trust ETF $469.52 $469.62 SPY JAN

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Consider the following spread:

Security	Qty	Bid	Ask
SPDR S&P 500 Trust ETF		$469.52	$469.62
SPY JAN 14 2022 457.0 CALL	-15	$3.55	$3.60
SPY JAN 14 2022 460.0 CALL	15	$2.20	$2.20

a. What type of spread is this?

b. What is the spread's possible payoff?

c. How much initial capital is required for this spread?

d. What is the breakeven point?

e. How much margin (buying power) does this position require?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Mar 14, 2023 07:36 AM

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Consider the following spread: Security Qty Bid Ask SPDR S&P 500 Trust ETF $469.52 $469.62 SPY JAN

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Expert Answer:

a This is a Bear Call Spread comprising of Selling 15 lo... View the full answer

Income Tax Fundamentals 2013

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