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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 money spread to help limit the cost of your option position. You find the following option quotes:
Wildwood Corporation Underlying Stock price: $56.00
Expiration | Strike | Call | Put |
June | $51.00 | $9.10 | $2.60 |
June | $56.00 | $4.80 | $3.60 |
June | $61.00 | $2.30 | $8.10 |
Ignoring the commissions, the cost to establish the bull money spread with calls be:
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