Question
The premium of a call with strike price of $155.00 is $7.40 and the premium of a call with strike price of $165.00 is $2.00.
The premium of a call with strike price of $155.00 is $7.40 and the premium of a call with strike price of $165.00 is $2.00. An investor decides to construct a bear spread using these two calls. At expiration, the maximum profit from the bear spread strategy is:
A. $9.40
B. $4.60
C. $5.40
D. $10.00
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
