Consider call options on the same stock with the same maturity date. You bought a call option with a strike price of $60 and sold another call option with a strike price of $81 for $6.13 and $2.74, respectively. This strategy is called a bull spread.

1)

What is your payoff if the stock price is $70.5 on the expiration date?

2)What is your profit if the stock price is $70.5 on the expiration date?

3)What is your payoff if the stock price is $86 on the expiration date?

4)

What is your profit if the stock price is $86 on the expiration date?