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What a call spread tells you · Part 1 of 3
Three European calls on a stock at $100 share an expiry. The 95-strike trades at $8.20, the 100-strike at $5.50 and the 105-strike at $3.40. Take interest rates as zero.
You buy the 95–105 bull call spread. What is its largest possible profit at expiry, per share?
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