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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 $56
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $56 per share. You want to establish a bullish spread to help limit the cost of your option position. You find the following option quotes:
Wildwoood Corp Underlying Stock price: $56.00 | |||
Expiration | Strike | Call | Put |
June | 51.00 | 9.10 | 2.30 |
June | 56.00 | 4.80 | 3.60 |
June | 61.00 | 2.30 | 8.10 |
Suppose you establish a bullish spread with the puts. In June the stock's price turns out to be $57. Ignoring commissions, the net profit on your position is _______________. |
$624
$180
$524
$100
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