Suppose that call options on a stock with strike prices of $30 and $35 cost $6.9...
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Suppose that call options on a stock with strike prices of $30 and $35 cost $6.9 and $4.1, respectively. Use these options to construct a bear spread ("\_). What is the profit of the strategy if the stock price is 40 at expiration? (required precision: 0.01 +/- 0.01) Suppose that call options on a stock with strike prices of $30 and $35 cost $6.9 and $4.1, respectively. Use these options to construct a bear spread ("\_). What is the profit of the strategy if the stock price is 40 at expiration? (required precision: 0.01 +/- 0.01)
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Certainly a bear spread can be constructed using the given call options Heres the breakdown Bear Spr... View the full answer
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