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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Finance For Non-Finance Executives
Authors: Anurag Singal
1st Edition
1952538327, 9781952538322
