Consider a bull spread where you buy a 40-strike call and sell a 45-strike call. Suppose = $40, = 0.30, = 0.08, = 0, and = 0.5. Draw a graph with stock prices ranging from $20 to $60 depicting the...


Consider a bull spread where you buy a 40-strike call and sell a 45-strike call. Suppose

= $40,

= 0.30,
= 0.08,

= 0, and

= 0.5. Draw a graph with stock prices ranging from $20 to $60 depicting the profit on the bull spread after 1 day, 3 months, and 6 months.



May 05, 2022
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