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The broker proposes that you buy two option lots with the following four legs (all have the same expiration date): Write 80 call for $2.50
The broker proposes that you buy two option lots with the following four legs (all have the same expiration date): Write 80 call for $2.50 per share Buy 85 call for $1.50 per share Write 70 put for $2.75 per share Buy 65 put for $1.75 per share How much will it cost to invest in this strategy, assuming there are no commissions? At expiration, at what values of the stock will the strategy be in the money?
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