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Unformatted text preview: Unlimited When does maximum possible profit occur/ (what do want the stock price to do): Stock price should go through the roof. Are there any margin Requirement if the trade is paid for: No Time Decay (Assuming nothing else changes what happens as time to maturity approaches): It will negatively affect our position Implied Volatility (Assuming nothing else changes what happens if stock volatility increases): Increases the value of the position prior to the expiration Delta: Positive Gamma: Positive Additional Information:...
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This note was uploaded on 02/27/2010 for the course FIN 311 taught by Professor Haan during the Spring '10 term at St. Josephs NY.
- Spring '10