You're very bullish about NVDA and want to initiate a bull spread with the company's stock...
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You're very bullish about NVDA and want to initiate a bull spread with the company's stock options. The premium for options that mature in 6 months with OTM calls and OTM puts are as follow: Calls: Strike $300 (1700) with premium of $27.7, strike $350 (1000) with premium of $13.2. Puts: Strike $300 (39) with premium $44.8, strike $350 (14) with premium of $95.9. The number in parenthesis are the contracts outstanding. Which option strategy with you prefer? Why it might not be possible for you to initiate your preferred strategy? You're very bullish about NVDA and want to initiate a bull spread with the company's stock options. The premium for options that mature in 6 months with OTM calls and OTM puts are as follow: Calls: Strike $300 (1700) with premium of $27.7, strike $350 (1000) with premium of $13.2. Puts: Strike $300 (39) with premium $44.8, strike $350 (14) with premium of $95.9. The number in parenthesis are the contracts outstanding. Which option strategy with you prefer? Why it might not be possible for you to initiate your preferred strategy?
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Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
Posted Date:
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