Question: Consider a bear spread constructed from puts with strike prices x 1 and x 2 with x 2 > x 1 . ( a )

Consider a bear spread constructed from puts with strike prices x1 and x2 with
x2>x1.
(a) Explain whether this spread would be a credit or debit spread.
(b) Sketch the payoff of the bull spread on the axes below.

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