Profit on a bull call spread
You build a bull call spread: buy a $95-strike call for $7 and sell a $105-strike call for $2 (same expiry, one share each). At expiry the stock is at $110. What is your net profit per share, in dollars (a loss is negative)?
Show hints (2)+
- Value both call legs at $110, then subtract the net debit.
- Payoff ; debit .
Answer
Reveal answer →Final answer
5
Want the full step-by-step worked solution? It's part of Premium - along with a worked solution for every question in the bank.
Asked at: Timed Mental-Math & Sequences, ETF Market-Making