Question 25
You are cautiously bullish on the common stock of the Wildwood
Corporation over the next several months. The current price of the
stock is $50 per share. You want to establish a bullish money
spread to help limit the cost of your option position. You find the
following option quotes:
Ignoring commissions, the cost to establish the bull money
spread with calls would be ________.
|
$1,050 |
||
|
$400 |
||
|
$400 income rather than cost |
||
|
$650 |
