Question: PLEASE EXPLAIN WITHOUT USING EXCEL HOW IS NET PROFIT OF BULL SPREAD $0.1 WHEN PRICE BECOMES $12.60? Current price quote is $12. Try to form

PLEASE EXPLAIN WITHOUT USING EXCEL HOW IS NET PROFIT OF BULL

PLEASE EXPLAIN WITHOUT USING EXCEL

HOW IS NET PROFIT OF BULL SPREAD $0.1 WHEN PRICE BECOMES $12.60?

Current price quote is $12. Try to form bull spread using call options and calculate the dollar amount net profit/loss of your bull spread when price becomes $12.6. Option Strike Premium Call 1 E1 = $12 c1 = $0.6 Call 2 E2 = $13 c2 = $0.1 Put 1 E1 = $12 p1 = $0.6 Put 2 E2 = $13 p2 = $1.5 $0.1 $0.3 $0.1 $0.3

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