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Consider a bullish spread option strategy using a call option with a $52 exercise price priced at $4.80 and a call option with a $64
Consider a bullish spread option strategy using a call option with a $52 exercise price priced at $4.80 and a call option with a $64 exercise price priced at $2.72.
a. If the price of the stock increases to $60 at expiration, what is the net profit per share at expiration (ignoring transaction costs)?
b. If the price of the stock increases to $68 at expiration, what is the net profit per share at expiration (ignoring transaction costs)?
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