The 6-month $730 strike call premium is $60 and the 6-month $830 strike call on the same
Fantastic news! We've Found the answer you've been seeking!
Question:
The 6-month $730 strike call premium is $60 and the 6-month $830 strike call on the same underlying asset is selling for $30. A strategy consists of longing the 730-strike call and shorting the 830-strike call. Interest rate is 6%. What is the price of the underlying asset that will make this strategy breakeven at maturity?
Related Book For
Posted Date: