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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 $57
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $57 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: $57.00 | |||
Expiration | Strike | Call | Put |
June | 52.00 | 9.20 | 2.35 |
June | 57.00 | 4.85 | 3.70 |
June | 62.00 | 2.35 | 8.20 |
Suppose you establish a bullish spread with the puts. In June the stock's price turns out to be $58. Ignoring commissions, the net profit on your position is _______________. |
$100
$185
$628
$528
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