For some reason, I can't seem to get this straight in my head. Yes, I know this is elementary but hopefully someone can clear this up. Page 25, here's the position: Long 1 March 95 call at 5.50 Short 3 March 105 calls at 1.15 Net debit is 2.05 According to the book, if the underlying finishes at 95, both the 95 and the 105 calls with be worthless. My problem is: How can the 105 calls be worthless at 95? If you're short 3 105 calls and the underlying finishes at 95, couldn't you be forced to exercise the purchase of 300 shares of the underlying at 105? Wouldn't this be a loss of $3000? Underlying at 95, you're forced to exercise buying 10 points above the price at expiration? I understand the the long 95 is worthless at expiration at 95. On top of the 3000, since the position was initially established at a 2.05 debit, wouldn't your total loss then be 3205?