SIE - Securities Industry Essentials Exam
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A customer bought an ABC 70 call for $6 and sold an ABC 65 Call for $8. What is the maximum profit for the customer?
$500
A
$300
B
$200
C
Unlimited
D
Explanations
The customer sold a vertical call spread for a $200 credit. This is the maximum amount of profit that can be made - the amount of premium collected.