What is the maximum potential profit of your strategy


Task: Suppose you purchase one IBM May 100 call contract at $5 and write one IBM May 105 call contract at $2

Q1. What is the maximum potential profit of your strategy?

Q2. If, at expiration, the price of a share of IBM stock is $103, what would your profit be?

Q3. What is the maximum loss you could suffer from your strategy?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the maximum potential profit of your strategy
Reference No:- TGS02061745

Now Priced at $20 (50% Discount)

Recommended (93%)

Rated (4.5/5)