Solution-What is the spread profit-to-loss ratio

What is the spread profit-to-loss ratio

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Reference no: EM133110547

Look at the following information.

Security	Qty	Bid	Ask
*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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What is the spread profit-to-loss ratio

Reference no: EM133110547

Reference no: EM133110547

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