Question: Consider call options on the same stock with the same maturity date. You bought a call option with a strike price of $55 and sold

Consider call options on the same stock with the same maturity date. You bought a call option with a strike price of $55 and sold another call option with a strike price of $80 for $5.12 and $2.57, respectively. This strategy is called a bull spread.

What is your payoff if the stock price is $67.5 on the expiration date?

What is your profit if the stock price is $67.5 on the expiration date?

What is your payoff if the stock price is $85 on the expiration date?

What is your profit if the stock price is $85 on the expiration date?

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