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What is the profit for a long bull spread

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Reference no: EM132643546

Assume that the current price of a stock is $100. A call option (#1) on that stock with an exercise price of $97 costs $7. A call option (#2) on the stock with the same expiration and an exercise price of $103 costs $3. Using these options what is the profit for a long bull spread (sell call #2 and buy call #1) if the stock price at expiration of the options is equal to $110?

Reference no: EM132643546

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