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You're very bullish about NVDA and want to initiate a bull spread with the company's stock options. The premium for options that mature in
You're very bullish about NVDA and want to initiate a bull spread with the company's stock options. The premium for options that mature in 6 months with OTM calls and OTM puts are as follow: Calls: Strike $300 (1700) with premium of $27.7, strike $350 (1000) with premium of $13.2. Puts: Strike $300 (39) with premium $44.8, strike $350 (14) with premium of $95.9. The number in parenthesis are the contracts outstanding. Which option strategy with you prefer? Why it might not be possible for you to initiate your preferred strategy?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
