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32 You are cautiously bulish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is
32
You are cautiously bulish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $52 per share. You want to establish a bullish spread to help limit the cost of your option position. You find the following option quotes: Wildwoood Corp Underlying Stock price: $52.00 Expiration Strike Call Put June 47.00 8.70 2.20 June 52.00 4.60 3.20 June 5700 2.10 770 Ignoring commissions, the cost to establish the bull spread with calls would be $660 O $410 income rather than cost $1.080 $410 Step by Step Solution
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