Holds his position until maturity of the options and stock

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Reference no: EM131131375

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?

a. -$3.00

b. -$1.00

c. $0

d. $1.00

e. $3.00

Reference no: EM131131375

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