Q18.1 - can someone explain this to me. Reneau wants to exploit the S&P forecast of outperformance with 2 call options. Obviously they will buy a call spread. Why does the answer then talk about the max loss being the difference between the 2 strikes - if they are long it would be the max gain.
There is nothing in Errata so can only assume it is me作者: Makavelim3 时间: 2013-4-12 23:20
it’s correct. the max loss is the difference in the COST of the strikes (net cost of the strategy), not the strike prices themselves. but now that i look at it again, the wording is pretty crappy.作者: b_sea93 时间: 2013-4-12 23:20
