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Consider a strategy in which an investor purchases a call option with a low strike price and sells a call option with a higher strike
Consider a strategy in which an investor purchases a call option with a low strike price and sells a call option with a higher strike price. The details of each option are provided below. What is the profit or loss of the overall strategy if the stock price at expiration is $68.83? Record your answer as positive for a profit and negative for a loss. Record your answer on a per/share basis, and to two decimal places. Long call option with premium = $6.14 and strike = $43 Short call option with premium = $3.80 and strike = $57
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