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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 $50
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 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 Corp | Underlying Stock price: $50.00 | ||
Expiration | Strike | Call | Put |
June | 45.00 | 8.50 | 2.00 |
June | 50.00 | 4.50 | 3.00 |
June | 55.00 | 2.00 | 7.50 |
If in June the stock price is $53, your net profit on the bull money spread (buy the 45 call and sell the 55 call) would be ________.
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