Here is a table of call option quotes on Nike (NKE) from CBOT on 26 February 2019. On that day NKE traded at $85.00 Recall that these quotes are per share but listed options are written on 100 shares. The options expire June 21 2019.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Here is a table of call option quotes on Nike (NKE) from CBOT on 26 February 2019.
On that day NKE traded at $85.00
Recall that these quotes are per share but listed options are written on 1O0 shares.
The options expire June 21 2019.
Bid
Ask
Strike
$6.40
$6.60 $82.50
$4.90
$5.05 $85.00
$3.60
$3.75 $87.50
Suppose that you purchase the $82.50 strike price call and sell the $87.50 strike call.
Ignoring commissions, the maximum profit of your strategy is closest to:
$500
$360
$200
$400
Transcribed Image Text:Here is a table of call option quotes on Nike (NKE) from CBOT on 26 February 2019. On that day NKE traded at $85.00 Recall that these quotes are per share but listed options are written on 1O0 shares. The options expire June 21 2019. Bid Ask Strike $6.40 $6.60 $82.50 $4.90 $5.05 $85.00 $3.60 $3.75 $87.50 Suppose that you purchase the $82.50 strike price call and sell the $87.50 strike call. Ignoring commissions, the maximum profit of your strategy is closest to: $500 $360 $200 $400
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