Question: A trader creates a bear spread by selling a six-month put option with a $25 strike price for $2.50 and buying a six-month put option
A trader creates a bear spread by selling a six-month put option with a $25 strike price for $2.50 and buying a six-month put option with a $29 strike price for $4.50. Compute the profit (including the cost) from the spread when the stock price in six months is (a) $23, (b) $26, and (c) $33.
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