Suppose bank of america bac stock is trading at 40 in june, Ask an Expert

Finance

Suppose Bank of America (BAC) stock is trading at $40 in June. A trader is bearish on BAC and decides to enter into a bear put spread position by buying a JUL 40 put for $300 and writing a JUL 35 put for $100. Assume that the stock price of Bank of America closed at $42 on expiration.

Discuss the gain or loss regarding the options trader.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92683119

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