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With these hypothetical examples, let's enter a simple time or calendar multiplication. We will chose the four month option for $ associated with.00 while simultaneously selling the 4 weeks option for $ 1.00. Our net cost would be $ single.00 ($ 2.00 less $ 1.00). Again for demonstration purposes intends not take commissions nor the bid/ask spread under consideration. And also ignore strike prices also.
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