# Between Strikes

## OEX Index is between 600 and 595 at expiration

>With the OEX exercise settlement value between the two strike prices of \$600 and \$595 at expiration, the short OEX 595 put would expire out-of-the-money and with no value, but the long 600 put would be in-the-money and worth its cash settlement amount. With OEX below the break-even point of 597.65, the settlement amount received for the 600 put would exceed the total debit initially paid for the spread and the investor would see a partial profit.

As an example, the OEX exercise settlement value is 596. The put’s cash settlement amount would be:

600 (put strike price) – 596 (settlement value) = \$4 x \$100 = \$400

The investor’s partial profit would be:

\$400 cash settlement amount received at put’s exercise
- \$235 total debit initially paid for spread
\$165 profit

On the other hand, if OEX settles above the break-even point (but below the higher 600 strike) the cash settlement amount will be less than the debit paid for the spread and a partial loss would be realized.

For instance, say the OEX exercise settlement value is 599. The put’s cash settlement amount would be:

600 (put strike price) – 599 (settlement value) = \$1 x \$100 = \$100

The investor’s partial loss would be:

\$235 total debit initially paid for spread
- \$100 cash settlement amount received at call’s exercise
\$135 loss

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