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You are long 50k calls on Lufthansa with a strike of Eur 67. The following news item comes up on ICTrader: Lufthansa makes unexpected loss
You are long 50k calls on Lufthansa with a strike of Eur 67. The following news item comes up on ICTrader: Lufthansa makes unexpected loss of Eur 1.5Bn. The bid-ask spread for Eur 67 strike puts and calls is 20.00%-22.00%. To take advantage of this news your prices for puts and calls in 50k should be:
A. Put:19.80-22.20 Call:20.20-21.80
B. Put:20.20-21.80 Call:19.80-22.20
C. Put:20.20-22.20 Call:19.80-21.80
D. Put:19:80-21.80 Call:20.20-22.20
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