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 $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: Wildwoood Corp Underlying Stock price: $63.00 Expiration Strike Call Put June 58.00 9.80 2.65 June 63.00 5.15 4.30 June 68.00 2.65 8.80 Suppose you establish a bullish money spread with the puts. In June the stock's price turns out to be $66. Ignoring commissions, the net profit on your position is _______________. Multiple Choice
$852
$300
$415
$552
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