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Suppose shortly after you purchased an XYZ December 60 call for $3 the price of the stock decreased to $56 per share on speculation of

Suppose shortly after you purchased an XYZ December 60 call for $3 the price of the stock decreased to $56 per share on speculation of a future announcement of low quarterly earnings for the XYZ Company, which you believe is warranted. Explain how you could profit at expiration by changing your potentially unprofitable call position to a potentially profitable spread position based on the stock decreasing. Assume there is an XYZ September 50 call available at $8 and evaluate the spread at expiration stock prices of $45, $50, $55, $60, $65, and $70.

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