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1) You are long a call or bull spread (made up of calls with strikes $90 and $95) on IBM when the market is trading

1) You are long a call or bull spread (made up of calls with strikes $90 and $95) on IBM when the market is trading at $94. The following news comes up on IC Trader: IBM 1st quarter profits unexpectedly up 75%. You receive a request for a price in a $95 strike call from JP Morgan. The market is currently 19.00%-20.00%. Which of the following is the best market maker's price you should quote to mitigate the risk on your current position given this news? A) 19.10 - 19.90 B) 18.90 - 19.90 C) 19.10 - 20.10 D) 18.50 - 19.50

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