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 $51
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $51 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: $51.00 Expiration Strike Call Put June 46.00 8.60 2.10 June 51.00 4.55 3.10 June 56.00 2.05 7.60 Ignoring commissions, the cost to establish the bull money spread with calls would be _______. Multiple Choice $405 income rather than cost $655 $1,065 $405
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