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

Reference no: EM133111069

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