Question: A Demne which straicpy ris a long bl and which rnis a long bear sprcad Justify your answer. Assume that all options are European and

A Demne which straicpy ris a long bl and which rnis

A Demne which straicpy ris a long bl and which rnis a long bear sprcad Justify your answer. Assume that all options are European and on the same underlying asset, with the same time to expiration (i) Buy a 45-strike call and sell a 50-strike call. (i) Buy a 45-strike put and sell a 50-strike put. (ii) Buy a call with a premium of 6 and sell a call with a premium of 10. (iv) Buy a put with a premium of 6 and sell a put with a premium of 10. (Hint - Compare strike prices of the two call options in (iii) and put options in (iv))

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