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Solve without excel thanks 4. A trader creates a bull spread using put options wth strike prices of $160, and $180 per share by trading
Solve without excel thanks
4. A trader creates a bull spread using put options wth strike prices of $160, and $180 per share by trading a total of 40 option contracts (20 short 180-strike put contracts and 20 long 160-strike put contracts). Each contract is written on 100 shares of stock. The 160- strike put option sells for $15 per share, and the 180-strike put option sells for $24 per share. What is the profit of the bull spread at maturity as a function of the then stock price Step by Step Solution
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