Determining the use a call spread strategy

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Suppose you use a call spread strategy on 4/15/2020, by buying a Facebook call option with the strike price of $180 at $7 and selling a Facebook call option with the strike price of $195 at $2. Both call options mature on 5/15/2020.

  • What is your total payoff and profit if Facebook share is traded at $170 on 5/15/2020?
  • What is your total payoff and profit if Facebook share is traded at $185 on 5/15/2020?
  • What is your total payoff and profit if Facebook share is traded at $200 on 5/15/2020?

Reference no: EM132509997

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