Question
Refer to the options chain below for a stock with a current price (S0) of $62.50 Option prices, T=1 X Call Put 75.00 4.17 14.45
Refer to the options chain below for a stock with a current price (S0) of $62.50 Option prices, T=1 X Call Put 75.00 4.17 14.45 72.50 4.84 12.70 70.00 5.60 11.03 67.50 6.47 9.48 65.00 7.45 8.03 62.50 8.54 6.69 60.00 9.76 5.49 57.50 11.11 4.41 55.00 12.60 3.47 52.50 14.21 2.66 50.00 15.96 1.98 You would like to buy a bullish, vertical $7.50 CALL spread starting at the money (ATM). What is the maximum profit potential for this options position if the underlying stock increases the full amount of the spread or more?
A. 1,125.00
B. 854.00
C. 456.00
D. 560.00
E. 294.00
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