Question: You create a bear spread by using a total of 200 9-month puts with strike prices of $35 and $40. These puts cost $4 and

  1. You create a bear spread by using a total of 200 9-month puts with strike prices of $35 and $40. These puts cost $4 and $6. What is your maximum potential profit?

    A.

    $400

    B.

    $500

    C.

    $300

    D.

    $600

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!