Answer the next 2 Questions based on the following information:

You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:

A bull call spread is constructed by buying a call option with a low strike price, and writing another call option with a higher strike price for the same expiration date.

Wildwood Corp Underlying stock price: $50.00

expiration strike call put

June 45 8.5 2.00

June 50 4.5 3.00

June 55 2.0 7.50

1. Ignoring commissions, the cost to establish the bull call spread with $45 and $50 strike prices would be _______.

A. $1,050 B. $650 C. $400 D. $400 income rather than cost

2. If in June the stock price is $53 your net profit on the bull call spread with $45 and $50 strike prices would be ________.

A. $300 B. -$400 C. $100 D. $50