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With these hypothetical examples, let's enter a simple time or calendar disperse. We will select the four month option for $ two.00 while simultaneously selling the 4 weeks option for $ 10.00. Our net cost would be $ single.00 ($ 2.00 less $ 10.00). Again for demonstration purposes intends not take commissions nor the bid/ask spread into consideration. And also ignore strike prices also.
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