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You are long a call spread (made up of calls with strikes $90 and $95) on IBM when the market is trading at $94. The
You are long a call spread (made up of calls with strikes $90 and $95) on IBM when the market is trading at $94. The following news comes up on IC Trader: IBM 1st quarter profits unexpectedly up 75%. You receive a request for a price in a $95 strike call from JP Morgan. The market is 19.00%-21.00%. You should quote:
A. 19.10-19.90
B. 18.90-20.90
C. 19.10-21.10
D. 18.90-21.10
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