Question
Suppose you purchase one IBM May 100 call contract at $8 and write (sell) one IBM May 110 call contract at $2. What sort of
Suppose you purchase one IBM May 100 call contract at $8 and write (sell) one IBM May 110 call contract at $2. What sort of shape does the profit diagram have (just describe briefly).
The maximum potential profit of your strategy is ________ if both options are exercised (i.e. if the stock price goes to 120).
If, at expiration, the price of a share of IBM stock is $103, your profit would be:
What is the maximum that you can lose with this position you have created?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
5th Edition
0910944008, 978-0910944007
