Question
You expect an asset trading at $40 to go up. You decided to have a bull price spread. Call options with exercise prices of $45
You expect an asset trading at $40 to go up. You decided to have a bull price spread. Call options with exercise prices of $45 and $50 are traded at $5 and $2, respectively. What are the characteristics of this strategy?
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Sport Finance
Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver
2nd Edition
0736067701, 978-0736067706
