Have no idea how he got.006

9. If you use a bull currency spread, your largest profit would be fixed at First option premium $0.019 Second option premium-$0.015 First option strike price $0.64 Second option strike price = $0.65 a) S0.004 b) S0.005 c) $0.006 d) $0.007 SOLUTION: Buy the call with lowerX Sell the call with higher X Net S.600 $.640 $.645 $.650 $.700 014 015 .001 019 015 004 019 015 004 009 015 006 041 035 006 Pick a spot price higher than both strike prices ($.64 and $.65), e.g. $.70. Then, calculate profit for two positions. Your answer will be always $0.006