Question 2 A trader wants to long a bear-spread with 2 = 52 and 1 = 47.

I. What view of the stock is the trader expressing through a long bear-spread?

II. What is the profit of the long bear-spread if = 49

III. What is the expected profit of the broker who is short the same bear-spread if = 46

IV. Show the profit diagram of the above long and short bear-spreads. Clearly label the points where the profit line intersects the x and the y axis.