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What is the spread profit-to-loss ratio

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Reference no: EM133110547

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Qty

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Cisco Systems, Inc.

 

$57.02

$57.04

CSCO 14 JAN 2022 57 CALL

10

$0.35

$0.41

CSCO 14 JAN 2022 60 CALL

10

$0.01

$0.03

CSCO 14 JAN 2022 57 PUT

10

$0.35

$0.41

CSCO 14 JAN 2022 54 PUT

10

$0.01

$0.04

a. If you decide to enter into a bear spread, how would it be structured, and what would the potential profit or loss be?

b. What is the spread's profit-to-loss ratio?

c. What is the breakeven point?

d. How much margin (buying power) does this position require?

Reference no: EM133110547

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