Question 5 3 pts Problem 5 (3 points) A trader creates a bull spread using calls with K , 520, and K, $25 (ie, buying call with K, and writing call with K.) If the cost of the call with strike K, is $4.5 and the cost of the call with strike Ky is $1.5: a) What is the maximum loss of this strategy? The maximum gain? The maximum loss is maximum gain is b) For what values of the terminal spot price does the trader have a gain (e. positive profit)? Trader has a gain when Sy is c) At the expiration date, when the trader closes all positions, the stock sells for $21.5. What is their net profit (indicate a gain or a loss)? Profit is ; Indicate "positive" or "negative" Next