Question
Question 4) The following information is available on company ABC. CALLS PUTS ABC X MAR APR MAY MAR APR MAY 120 6 8 11 1
Question 4)
The following information is available on company ABC.
CALLS PUTS
ABC X MAR APR MAY MAR APR MAY
120 6 8 11 1 3 4
125 2 5 8 2 4 6
130 1 3 6 5 7 9
A bear money spread using the May 125 and 130 calls would involve what initial cash flow?
| +$100
| ||
| +$200 | ||
| -$100
-$100
| ||
| None of these answers are correct
| ||
| -$200
|
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Governmental and Nonprofit Accounting
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
10th edition
132751267, 978-0132751261
