Question
Suppose you purchase one Texas Instruments call contract with a strike price of $75 that is quoted at $8.50 and write one Texas Instruments call
Suppose you purchase one Texas Instruments call contract with a strike price of $75 that is quoted at $8.50 and write one Texas Instruments call contract with a strike price of $80 that is quoted at $6. At expiration, the price of a share of Texas Instruments stock is $79.
1.) What is the payoff of this strategy?
2.) What is the profit of this strategy?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
