The following three call options on gold all expiring in, Ask an Expert

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The following three call options on gold, all expiring in three months, sell for:

Exercise price Option price

$1200 $62

$1250 $40

$1300 $23

Consider the following position:

buy 1 call with K = 1200

sell (write) 2calls with K = 1250

buy 1 call with K = 1300

What would be the values at expiration of such a spread for various prices of spot gold?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91267712

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