medium · FRM Part 1 Financial Markets and Products
An investor constructs a bull call spread by purchasing a call with strike K₁ = $50 for a premium of $4.50 and selling a call with strike K₂ = $60 for a premium of $1.80.
If the underlying asset price at maturity is $62, what is the net profit of the position?
- $10.00
- $7.30
- $12.00
- $4.70
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