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Alex, an experienced option trader, constructed a long call butterfly spread ( see steps below ) for MSFT stock for options expiring March 1 7
Alex, an experienced option trader, constructed a long call butterfly spread see steps below for MSFT
stock for options expiring March MSFT is currently selling for per share.
Step Buy Call Options:
Buy one lower strike call option inthemoney
Buy one higher strike call option outofthemoney
Step Sell Call Options:
Sell two call options with a strike price in between the two options bought in step
Bought a call option at for $$
Bought a call option at for $$
Sold two call options at for $ each $ total
Net investment $$
What is the Profit or Loss if the MSFT closes at the following prices on March
MSFT closes at $
MSFT closes at $
MSFT closes at $
MSFT closes at $
MSFT closes at $
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