536A COMPleTe gUIde TO THe FUTUreS MArKeT
 tabLe 35.19a      profit/Loss Calculations: bear Call Money Spread (Short Call with Lower Strike price/
Long Call with higher Strike price); Case 1—both Calls In-the-Money  
(1) (2) (3) (4) (5) (6) (7) (8)
Futures price 
at expiration 
($/oz)
premium of 
august $1,150 
Call ($/oz)
$ amount 
of premium 
paid
premium of 
august $1,100 
Call ($/oz)
$ amount 
of premium 
received
$1,150 Call 
Value at 
expiration
$1,100 Call 
Value at 
expiration
 profit/Loss on 
position  
 [(5) − (3) + (6) − (7)] 
1,000 70.1 $7,010 110.1 $11,010 $0 $0 $4,000
1,050 70.1 $7,010 110.1 $11,010 $0 $0 $4,000
1,100 70.1 $7,010 110.1 $11,010 $0 $0 $4,000
1,150 70.1 $7,010 110.1 $11,010 $0 $5,000 –$1,000
1,200 70.1 $7,010 110.1 $11,010 $5,000 $10,000 –$1,000
1,250 70.1 $7,010 110.1 $11,010 $10,000 $15,000 –$1,000
1,300 70.1 $7,010 110.1 $11,010 $15,000 $20,000 –$1,000
1,350 70.1 $7,010 110.1 $11,010 $20,000 $25,000 –$1,000
1,400 70.1 $7,010 110.1 $11,010 $25,000 $30,000 –$1,000
Price of August gold futures at option expiration ($/oz)
Profit/loss at expiration ($)
1,000
3,750
5,000
2,500
0
−1,250
1,250
1,050 1,100 1,150 1,200 1,250
Breakeven price = $1,140
1,300 1,350 1,400
Futures price at time
of position initiation
    FIGURE   35.19a    Profi  t/loss Profi  le: Bear Call Money Spread (Short Call with lower Strike 
Price/long Call with Higher Strike Price); Case 1—Both Calls In-the-Money