Question: 9. A trader creates a bear spread by selling a six-month put option with a $50 strike price for $4.50 and buying a six- month

 9. A trader creates a bear spread by selling a six-month

9. A trader creates a bear spread by selling a six-month put option with a $50 strike price for $4.50 and buying a six- month put option with a $60 strike price for $9.50. What is the initial investment? What is the profit on the trade at maturity when the then stock price is (a) $46, (b) $56, and (c) $66

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