You are cautiously bullish on the common share of the Wildwood Corporation over the next several months. The current price of the share is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:
Ignoring commissions, the cost to establish the bull money spread with calls would be ________.
A) $1 050
B) $650
C) $400
D) $400 income rather than cost

Question

You are cautiously bullish on the common share of the Wildwood Corporation over the next several months. The current price of the share is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:
 Ignoring commissions, the cost to establish the bull money spread with calls would be ________.
A) $1 050 
B) $650 
C) $400 
D) $400 income rather than cost

Quizplus · Accepted Answer

The Answer is B

You Are Cautiously Bullish on the Common Share of the Wildwood