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You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $63
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $63 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:
Ignoring commissions, the cost to establish the bull money spread with calls would be __________.
Multiple Choice
$465 income rather than cost
$465
$1,245
$715
\begin{tabular}{lccc} Wildwood Corporation & \multicolumn{2}{c}{ Underlying Stock price: $63.00} \\ Expiration & Strike & Call & Put \\ June & $58.00 & $9.80 & $3.30 \\ June & $63.00 & $5.15 & $4.30 \\ June & $68.00 & $2.65 & $8.80 \end{tabular}Step by Step Solution
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