如何理解minimum cost

问题如下：

Another client of Erica Taylor, Nithin Rao, does not own any shares of Dropqik Corporation. Rao wants to speculate on the price volatility of Dropqik and expects large deviations in the share price following the new product release in the next month. Rao requests that Taylor recommend suitable strategies to profit from the directional moves in the share price. Taylor prepares the following three strategies to present to Rao

Strategy 1: A bull call spread combined with a bear put spread using $35 and $25 strike options.

Strategy 2: A long straddle position at the $30 strike price.

Strategy 3: A long strangle position using $40 and $20 strike options.

Exhibit 1 Option Contract Pricing Details for Dropqik Corporation

Given the information in Exhibit 1, the minimum cost of implementing Strategy 1 is closest to:

选项：

$12.49

$12.75

$12.86

解释：

Correct Answer: A

A bull call spread is constructed by buying a lower exercise call and writing a higher exercise call. A bull spread becomes more valuable when the price of the underlying asset rises. The minimum cost implementation would typically use options with strike prices close to the current market price.

Buy $25 strike call and sell $35 strike call

Net premium for a bull call spread Vo = c_L – c_H = $10.30 – $1.45 = $8.85

A bear put spread is constructed by buying a higher exercise put and writing a lower exercise put. A bear spread becomes more valuable when the price of the underlying asset declines. The minimum cost implementation would typically use options with strike prices close to the current market price.

Buy $35 strike put and sell $25 strike put

Net premium for a bull call spread Vo = p_H – p_L = $5.20 – $1.56 = $3.64

Total cost = $8.85 + $3.64 = $12.49