Options Spreads

[clip1989]

For the spreads, when they ask to “prove” the breakeven even price, do we need to know that ridiculous formula for every spread? I find it easiest to look at it logically, figure out the price, and then show why the profit will be 0.

 

[confused2010]

i couldn’t remember all the formulae. didn’t bother. i agree we have to show that at break even price the profit/loss on the strategy taking into a/c option cost is zero.