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
Section: Chapter Questions
Problem 1PS
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Question
You engage in the following strategy:
Buy a call, strike price = $5, option premium = $2
Buy a call strike = $15, option premium = $4
Sell two call options with a strike price = $10; option premium = $2.50 each
All options are written on 100 shares.
Within $10, what is the most that you can make?
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