Suppose you buy one SPX call option with a strike of 1,475 and write one SPX cal

Question

Suppose you buy one SPX call option with a strike of 1,475 and write one SPX call option with a strike of 1,500. What are the "per share" (i.e., per unit) payoffs at maturity to this position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550? (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)

        

Index level Long call
payoff Short call
payoff Total payoff    1350         1400            1450            1500            1550        

Explanation / Answer

Hope this helps.

Index level Long call payoff = index value - stike price Short call payoff = strike price - index value Total payoff = short call payoff -long call payoff 1350 -125 150 275 1400 -75 100 175 1450 -25 50 75 1500 25 0 -25 1550 75 -50 -125

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