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What should be your strategy under the such scenario

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(a) Due to the bullish trend of the market in underlying stock of option which is trading at $75. Based on the market estimate you opt for one call option with strike price of $70 and selling at S7.5, and one short call option with a strike price of $80 and selling at S3. The expiration on both cases is 6 months.

a. What should be your strategy under the such scenario explain?

b. What would be the position at the expiration and what would be the value the profit if price is S79, $88, and S70

Reference no: EM132555169

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