Question
Todays price of AAPL is $200 per share. You are interested in a bull call spread on AAPL with one year until maturity. You ask
Todays price of AAPL is $200 per share. You are interested in a bull call spread on AAPL with one year until maturity. You ask an option dealer to provide quotes on AAPL options with one year until maturity. For a call option with a strike of $215, the dealer quotes you a price of $13.99. For a call option with a strike of $255, the dealer quotes you a price of $4.94. The c.c. risk-free interest rate is zero percent. When does your bull call spread break even on its investment? Input your answer in terms of the stock price in one year (e.g., $200). Round your answer to three decimal places.
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