DOCUMENT 15 OF 26 - Babson College
It is created by selling an out of the money call and using the proceeds to buy an out of the money put. ... The holder of a vertical spread will make or lose money based on where the price of the underlying stock goes during the life of the options. ... Both puts expire in-the-money with the May 40 call bought having $600 in intrinsic value ... ................
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