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

What is the spread profit-to-loss ratio

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Reference no: EM133111069

Look at the following information. (Consider both put and call spreads)

*Security*	*Qty*	*Bid*	*Ask*
*Pfizer Inc.*		$51.38	$51.40
PFE 14 JAN 2022 51 CALL	10	$2.39	$2.54
PFE 14 JAN 2022 55 CALL	10	$1.24	$1.31
PFE 14 JAN 2022 51 PUT	10	$1.94	$2.15
PFE 14 JAN 2022 47 PUT	10	$0.63	$0.77

If you decide to enter into a bull spread, how would it be structured, and what would the potential profit or loss be?
What is the spread's profit-to-loss ratio?
What is the breakeven point?
How much margin (buying power) does this position require?

Reference no: EM133111069

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What is the spread profit-to-loss ratio

Reference no: EM133111069

Reference no: EM133111069

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