Question
Assume Apple is currently selling for $170 dollars a share. You write an April expiration call option on Apple with exercise price $180. You also
Assume Apple is currently selling for $170 dollars a share. You write an April expiration call option on Apple with exercise price $180. You also write an April put option with an exercise price of $160.
A) What kind of bet are you making? (What do you believe/hope will happen to Apple's stock price?) B) At what final (April expiration) Apple price will you maximize your gain?
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International Finance For Non Financial Managers
Authors: Dora Hancock
1st Edition
0749480017, 9780749480011
