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F. The following table shows data for the call bullspread series that can be created with the current month QQQQ call options. The quotes for QQQQ are currently $30.26 bid and $30.27 asked. Which of the following call bullspreads would be a foolish investment? Xlow/Xhigh 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 cost 106 106 104 104 101 98 96 91 85 77 63 52 36 23 max profit -6 -6 -4 -4 -1 2 4 9 15 23 37 48 64 77 max ret -5.66% -5.66% -3.85% -3.85% -0.99% 2.04% 4.17% 9.89% 17.65% 29.87% 58.73% 92.31% 177.78% 334.78% max ret SB 10.26 9.26 8.26 7.26 6.26 5.26 4.26 3.26 2.26 1.26 0.26 -0.74 -1.74 -2.74 breakeven SB 10.20 9.20 8.22 7.22 6.25 5.28 4.30 3.35 2.41 1.49 0.63 -0.26 -1.10 -1.97 F. The following table shows data for the call bullspread series that can be created with the current month QQQQ call options. The quotes for QQQQ are currently $30.26 bid and $30.27 asked. Which of the following call bullspreads would be a foolish investment? Xlow/Xhigh 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 cost 106 106 104 104 101 98 96 91 85 77 63 52 36 23 max profit -6 -6 -4 -4 -1 2 4 9 15 23 37 48 64 77 max ret -5.66% -5.66% -3.85% -3.85% -0.99% 2.04% 4.17% 9.89% 17.65% 29.87% 58.73% 92.31% 177.78% 334.78% max ret SB 10.26 9.26 8.26 7.26 6.26 5.26 4.26 3.26 2.26 1.26 0.26 -0.74 -1.74 -2.74 breakeven SB 10.20 9.20 8.22 7.22 6.25 5.28 4.30 3.35 2.41 1.49 0.63 -0.26 -1.10 -1.97

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