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Suppose OEM stock is currently selling for $100 and the call with a $100 strike price on the stock is selling for $3 and the
Suppose OEM stock is currently selling for $100 and the call with a $100 strike price on the stock is selling for $3 and the call with a $120 strike price is selling for $1. You expect the price to go up, but youre not sure about this, so you want to limit your payout, so you decide to set up a bullish spread. Assume you purchase the call with a strike price of $100 and you write the call with a strike price of $120. Calculate the maximum profit of a vertical call spread.
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