You engage in the following strategy 1.Buy a put, strike price = $5, option premium = $2; 2.Buy a put strike = $15, option premium
You engage in the following strategy
1.Buy a put, strike price = $5, option premium = $2;
2.Buy a put strike = $15, option premium = $4;
3.sell two puts with a strike price = $10; option premia = $2.50 each
All options written on 100 shares.
Within $10, what is the maximum possible gain?
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Authors: Judith J. Baker, R.W. Baker
4th Edition
1284029867, 978-1284029864
