What kind of bet are you making

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Reference no: EM131556050

Assume Apple is currently selling for $170 dollars a share. You write an April expiration call option on Apple with exercise price $180. You also write an April put option with an exercise price of $160.

A) What kind of “bet” are you making? (What do you believe/hope will happen to Apple's stock price?)

B) At what final (April expiration) Apple price will you maximize your gain?

Reference no: EM131556050

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