7) You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current

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7 You Are Cautiously Bullish On The Common Stock Of The Wildwood Corporation Over The Next Several Months The Current 1 (37.59 KiB) Viewed 37 times

7) You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $60 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: Wildwood Corporation Underlying Stock price: $60.00 Expiration Strike Call Put June $ 55.00 $ 9.50 $ 2.50 June $ 60.00 $ 5.00 $ 4.00 June $ 65.00 $ 2.50 $ 8.50 a Suppose you establish a bullish money spread with the puts. In June the stock's price turns out to be $64. Ignoring commissions, the net profit on your position is A) $540 B) $940 C) $400 D) $500