24 Jul WHAT IS THE PAYOFF FROM YOUR POSITION IF THE STOCK PRICE ENDS AT $32?
Consider two call options on the same underlying stock and same expiration date. You buy the call wi Show more Consider two call options on the same underlying stock and same expiration date. You buy the call with X = 40 and sell call with X = 50. What is the payoff from your position if the stock price ends at $32? What is the highest payoff from this position? What is the lowest payoff from this position? When would you engage in such a position? PS: In all questions above X = the exercise price of the options C = call premium P = put premium plz show detailed answer Show less
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