Question

In: Finance

Suppose you purchase one WM May strike=102 call contract at $5 and write one WM May...

Suppose you purchase one WM May strike=102 call contract at $5 and write one WM May strike=107 call at $2. If the price of WM stock is $105 at expiration, your profit would be _____.

A.

$4.

B.

$400.

C.

zero.

D.

$2.

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

ANSWER C : ZERO


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