Question
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $61
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $61 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: Wildwoood Corp Underlying Stock price: $61.00 Expiration Strike Call Put June 56.00 9.60 3.10 June 61.00 5.05 4.10 June 66.00 2.55 8.60 Ignoring commissions, the cost to establish the bull money spread with calls would be _______. Multiple Choice $1,215 $705 $455 $455 income rather than cost
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