Question: Construct a bull spread by buying a three-month call option with a $45 strike price for $14.60 and selling a three-month call option with a
Construct a bull spread by buying a three-month call option with a $45 strike price for $14.60 and selling a three-month call option with a $60 strike price for $3.65. Construct a payoff table and estimate the profit of the bull spread when the stock price at expiration is (i) $40 (ii) 50 (iii) 70
A trader creates a bear spread by selling a six-month put option with a $170 strike price for $0.20 and buying a six-month put option with a $200 strike price for $6.80. Construct a payoff table and estimate the profit of the bear spread when the stock price at expiration is (i) $150, (ii) $185, (iii) $210
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