28. Bull Spread with Puts (CFA5) You can also create a bull spread using put options. To...
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28. Bull Spread with Puts (CFA5) You can also create a bull spread using put options. To do so, you buy a put and simultaneously sell a put at a higher strike price on the same stock with the same expiration. A put with a strike price of $20 is available for $.45 and a put with a strike price of $25 is available for $1.64. Draw a graph showing the payoff and profit for a bull spread using these options.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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