An investor bought the XYZ 105110 call spread for $1.00 months ago and now the stock has
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An investor bought the XYZ 105110 call spread for $1.00 months ago and now the stock has rallied up. With the stock now above 110.00, he wants to take profits. Which is the best way to unwind the position, selling the 105110 call spread out or legging into the market neutral 105110 box spread? The carrying cost on the 105110 box is $0.05. (Assume buying on the offer and selling on the bid.)
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