Problem 4 (20 pt). A bull spread is an options strategy that profits from a mod- erate rise in the price of the underlying security. A bull spread can be constructed using either put or call options. If it is constructed using calls, it is called a bull call spread. Alternatively, if the bull spread is constructed using puts, it is called a bull put spread. Salesforce stock trades at $191.27. You want to enter into a bull call spread with a one-year expiration which has the following payoff at maturity if S1 250 Here Si is the price of Salesforce stock in one year and the continuously compounded risk-free rate is 2%. You may buy and sell the following options with a maturity of one year Call Strike Put 25.95 200 29.28 9.20 250 70.90 (a) Compute the break-even price at maturity of a bull call spread strategy with the payoff given in equation (1). (b) What is the break-even price of a bull put spread strategy which has a similar payoff structure to the bull call spread in (a)? (c) Which strategy (bull call spread or bull put spread) is more advantageous if you want to enter into a long position