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Need help with Finance investment. Graduate level. 1) An option trader could have established a vertical call spread on QQQ by purchasing QQQ/October/55 for $6/share
Need help with Finance investment. Graduate level.
1) An option trader could have established a vertical call spread on QQQ by purchasing QQQ/October/55 for $6/share and selling QQQ/October/60 for $4/share. QQQ stock is selling for $61/share. a. What is his investment? b. Calculate gain/loss for the following cases: i. The stock moves to $50 ii. The stock moves to $80 c. What is maximum potential profit? d. What is maximum potential loss? e. What is the risk/reward ratioStep by Step Solution
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