Six-month call options with strike prices of 40 and 45 cost, Ask an Expert

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Six-month call options with strike prices of $40 and $45 cost $5 and $2, respectively.

1. What is the maximum gain when a bull spread is created from the calls?

2. What is the maximum loss when a bull spread is created from the calls?

3. What is the maximum gain when a bear spread is created from the calls?

4. What is the maximum loss when a bear spread is created from the calls?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91621184

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