Question
Prices as shown on 20 Dec 2018 Apple Inc :Current spot price: $ 150 CALLS PUTS Dec Jan Feb Strike Price Dec Jan Feb 5
Prices as shown on 20 Dec 2018
Apple Inc : Current spot price: $ 150
| CALLS | PUTS | |||||
| Dec | Jan | Feb | Strike Price | Dec | Jan | Feb |
| 5 | 8.85 | - | 149 | 2.67 | 6.6 | 7.93 |
| 4.25 | 8.35 | 9.65 | 150 | 3.15 | 7 | 8.38 |
| 2.97 | 7 | 7.95 | 152 | 4.2 | 8.1 | 9.5 |
| 1.88 | 5.83 | 7.36 | 155 | 5.85 | 9.3 | 10.64 |
Construct a Bull Spread diagram using data from the above table.
If price of Apple Inc moves to 175 sometime in the near future how much profit will you make ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To construct a Bull Spread diagram using the given data we need to select two call options with diff...
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Step: 2
Step: 3
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Fundamentals Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
0072553073, 9780072553079
