Question: Part 2: Bear Spread B) Consider selling a put option with a strike of $25 and buying a put option with a strike of $30.

 Part 2: Bear Spread B) Consider selling a put option with
a strike of $25 and buying a put option with a strike

Part 2: Bear Spread B) Consider selling a put option with a strike of $25 and buying a put option with a strike of $30. Fill in the table for the payoffs of the bear spread (10 points) Payoff from a bear spread created with put options Stock price Payoff from Payoff from Total range long put option short put option payoff Sr K2 0 0 0 C) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the bear spread. Label the axes and chart title (10 points) 27 B) Bul Spread Plot 28 29 31 32 33 34 35 36 37 38 39 40 41 42 43

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