Question
XYZ CORP Exercise NYSE Date Price Price Close Calls OCT 85 16 3/4 101 11/16 OCT 90 12 101 11/16 OCT 95 7 5/8 101
| XYZ CORP | ||||
|
| Exercise | NYSE | ||
|
| Date | Price | Price | Close |
| Calls | OCT | 85 | 16 3/4 | 101 11/16 |
|
| OCT | 90 | 12 | 101 11/16 |
|
| OCT | 95 | 7 5/8 | 101 11/16 |
| Puts | OCT | 85 | 1/8 | 101 11/16 |
|
| OCT | 90 | 3/8 | 101 11/16 |
|
| OCT | 95 | 13/16 | 101 11/16 |
If XYZ were trading at $90/share and you formed a bull money spread, what is your profit if XYZ is trading at $110 at expiration?
| a. | $912.50 loss | ||
| b. | $87.50 gain | ||
| c. | $87.50 loss | ||
| d. | $1,000.00 gain | ||
| e. |
|
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Investments An Introduction
Authors: Herbert B Mayo
10th Edition
0538452099, 9780538452090
