Question
Six-month put options with strike prices of $40 and $45 cost $3 and $5, respectively. You plan to create a bull spread put (Selling a
- Six-month put options with strike prices of $40 and $45 cost $3 and $5, respectively. You plan to create a bull spread put (Selling a put spread) by trading a total of 00 options?
Total amount of credit or debit: ____________________ (Credit or Debit?)
Maximum amount of profit or loss: ______$300*100________ (Profit or Loss?)
Break-even stock price of this spread: ____________________
NB: Show full workings
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
