Question: Question 2 (Bear Spread): Consider the following options position = $30 and with a a short position in a call on a stock with a

 Question 2 (Bear Spread): Consider the following options position = $30

Question 2 (Bear Spread): Consider the following options position = $30 and with a a short position in a call on a stock with a strike X1 price $6; and $40 and a long position in a call on the same stock with a strike X2 with a price $4. a) (10 points) Find the payoff if the stock price at expiration date turns out to be St = $35 including the initial cost and gain. b) (10 points) Find the payoff if the stock price at expiration date turns out to be ST $45 including the initial cost and gain. c) (15 points) Find the payoff as a general function of the stock price at expiration date St including the initial cost and gain

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