Use the spreadsheet from the Excel Application boxes on spreads and straddles to answer these questions.

a. Plot the payoff and profit diagrams to a straddle position with an exercise (strike) price of $130. Assume the options are priced as they are in the Excel Application.

b. Plot the payoff and profit diagrams to a bullish spread position with exercise (strike) prices of $120 and $130. Assume the options are priced as they are in the Excel Application.