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Assume that the current price of a stock is $100. A call option on that stock with an exercise price of $98 costs $7. A
Assume that the current price of a stock is $100. A call option on that stock with an exercise price of $98 costs $7. A call option on the stock with the same expiration and an exercise price of $105 costs $4. Using these options what is the cost of entering into a long bull spread on this stock?
A) -$1.
B) $0.
C) $3.
D) $4.
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