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Business, 02.07.2020 19:01 gabriellarose2930

You are cautiously bullish on the common stock of EXTREME INC over the next several months. The current price of the stock is $59 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes: EXTREME INC Underlying Stock price: $59.00 Expiration Strike Call Put June 54.00 9.40 2.45 June59.00 4.95 3.90 June64.00 2.45 8.40 Suppose you establish a bullish money spread with the puts. In June the stock's price turns out to be $62. Ignoring commissions, the net profit on your position is

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