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 |
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$400 |
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$400 income rather than cost |
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$650 |