Question
1.Suppose you buy one SPX call option with a strike of 2125 and write one SPX call option with a strike of 2150. What are
1.Suppose you buy one SPX call option with a strike of 2125 and write one SPX call option with a strike of 2150. What are the payoffs at maturity to this position for S&P 500 index levels of 2050, 2100, 2150, 2200, and 2250? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
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2.
Suppose you write 10 call option contracts with a $50 strike. The premium is $2.75. Evaluate your potential gains and losses at option expiration for stock prices of $40, $50, and $60. (Input all amounts as positive values.)
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