You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock 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:
-Suppose you establish a bullish money spread with the puts.In June the stock's price turns out to be $52.Ignoring commissions the net profit on your position is __.
A) $500
B) $700
C) $200
D) $250

Question

You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock 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: 
-Suppose you establish a bullish money spread with the puts.In June the stock's price turns out to be $52.Ignoring commissions the net profit on your position is __.
A) $500 
B) $700 
C) $200 
D) $250

Quizplus · Accepted Answer

The Answer of You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock 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: 
-Suppose you establish a bullish money spread with the puts.In June the stock's price turns out to be $52.Ignoring commissions the net profit on your position is __.
A) $500 
B) $700 
C) $200 
D) $250

You Are Cautiously Bullish on the Common Stock of the Wildwood