Question
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a
Suppose you have a long call spread on Micron Technology. The stock currently trades for $48.03 per share. You buy a Micron call with a strike price of $47.00 for a premium of $1.55 and you sell a Micron call with the same expiration and a strike price of $50 and a premium of 26 cents.
What is your total profit or loss at a stock price of $299.00?
| A. | Gain of $224,000 | |
| B. | Gain of $171.00 | |
| C. | Gain of $119.00 | |
| D. | Loss of $129.00 |
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Capital As Power
Authors: Jonathan Nitzan, Shimshon Bichler
1st Edition
0415496802, 978-0415496803
