Bull call spread strategy: The current stock price of is $78.91, you buy a call option...

Bull call spread strategy: The current stock price of is $78.91, you buy a call option with the expiration of August 21, with the strike price of 72.50$ with ask $11.30, then sell a call for 82.50$ with bid $5.40. You buy a 44 contracts of each call option, with a multiplier of 100. Net Debit: paying $49,720(1,130*44 contracts) and receiving $23,760(540*44)= $25,960

You liquidate the options before expiration on May 20. The stock price on May 20 is 98$. Show calculations of your profit/loss on each position, and the net profit/loss on the portfolio.

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jeff jeffy answered 1 year ago

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