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The following information is available on company ABC. CALLS PUTS ABC X MAR APR MAY MAR APR MAY 119 120 6 8 11 1 3
The following information is available on company ABC.
CALLS PUTS
ABC X MAR APR MAY MAR APR MAY
119 120 6 8 11 1 3 4
119 125 2 5 8 2 4 6
119 130 1 3 6 5 7 9
A bear money spread using the May 125 and 130 calls would involve what initial cash flow?
+$200
| ||
-$100
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+$100
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-$200
|
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