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The Three-Month 90-Strike Put Is Priced at $2 and the Three-Month

Question 22

Multiple Choice

The three-month 90-strike put is priced at $2 and the three-month 100-strike put is priced at $7. What is the maximum possible net payoff on a bearish vertical spread using these options?


A) $5
B) $7
C) $8
D) $10

Correct Answer:

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