How Vertical Spreads Can Affect Expensing Stock Options (part 2)
How Vertical Spreads Can Affect Expensing Stock Options (part 2)
Again we set time forward to Friday, July expiration. We set the expensing stock options closing price at $60.00. At $60.00, both the July 45 puts and the July 60 puts will be out of the money and thus worthless. With both the July 45 puts and July 60 puts worthless, the spread is also worthless (July 60 put $0 July 45 put $0).
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