Bull spread net profit

You build a bull call spread: long a $50-strike call bought for $6.00 and short a $60-strike call sold for $2.20. At expiry the stock finishes at $57. What is your net profit per share, in dollars to two decimals?

Show hints (2)+
  1. Net premium paid =6.002.20= 6.00 - 2.20; only the long call pays at $57.
  2. Profit == payoff - net premium.

Answer

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3.2 (± 0.001)

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Asked at: Timed Mental-Math & Sequences, Game-Based Aptitude

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