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Bull spread payoff

EasyFinance & Derivatives~3m

You build a bull call spread: long a call struck at K1=50K_1=50 and short a call struck at K2=60K_2=60. What is the maximum payoff at expiry (ignoring premium)?

Show hints (2)+
  1. The short call caps the upside at the higher strike.
  2. Max payoff is the distance between strikes.

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Asked at: Optiver, IMC

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