Question: You currently have a position on a spread, which is a combination of a long call and a short call on the same stock. The
You currently have a position on a spread, which is a combination of a long call and a short call on the same stock. The excise price is $30 for the long call and $40 for the short call. You paid a premium of $2 for the long call and received a premium of $1 for the short call. Both options have the same expiration date.If the stock price is $32, what is your net income? Select one: O a. $0 O b. $3 OC. $2 od. $1
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
