Question
If you pay $4 for a call option on JPM stock with an at the money strike price of $100 and at the same time
If you pay $4 for a call option on JPM stock with an at the money strike price of $100 and at the same time you write a call option with a strike price of $110 for which you receive $1; how much money do you make or lose on the transaction if the stock goes to either $120; $105; or $90?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
