Consider two call options on the same underlying stock

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Consider two call options on the same underlying stock and same expiration date. You buy the call with x= 40, and sell call with x=50. What is the any off from your position if the stock price ends at $32? What is the highest payoff from this position? What is the lowest payoff from this position? When would you engage in such a position?

Reference no: EM13876413

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