A trader creates a bull spread on a stock by selling one, Financial Management

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A trader creates a bull spread on a stock by selling one

A trader creates a bull spread on a stock by selling one 3-month $50-strike European call option at $2 and buying one 3-month $45-strike European call option at $4. What is the trader’s profit if he holds his position until maturity of the options and the stock price is $48 then?

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Financial Management: A trader creates a bull spread on a stock by selling one

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Financial Management: A trader creates a bull spread on a stock by selling one

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