A bank decides to create a five-year principal-protected note on a non-dividend-paying stock by offering investors a

Question:

A bank decides to create a five-year principal-protected note on a non-dividend-paying stock by offering investors a zero-coupon bond plus a bull spread created from calls. The risk-free rate is 4% and the stock price volatility is 25%. The low option in the bull spread is at the money. What is the maximum ratio of the higher to the lower in the bull spread? Use DerivaGem.
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.