Refer to the table below for constructing option strategies for all questions. The current stock price is 50, the risk free rate is 5%. Option prices below are for a 6 month period. K 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Call Price Put Price 6.29 0.74 5.55 0.98 4.85 1.27 4.21 1.61 3.62 2.02 3.09 2.47 2.62 2.99 2.20 3.56 1.84 4.18 1.52 4.85 1.25 5.56 1.01 6.32 0.82 0.66 7.94 0.52 8.79 0.42 9.67 0.33 10.57 0.26 11.49 0.20 12.42 0.15 13.36 0.12 14.31 7.11 60 61 62 63 64 65 Question 2 = A A trader wants to long a bear-spread with K2 = 52 and K1 = 47. . 1. 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 St = 49 III. What is the expected profit of the broker who is short the same bear-spread if St = 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. = Refer to the table below for constructing option strategies for all questions. The current stock price is 50, the risk free rate is 5%. Option prices below are for a 6 month period. K 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Call Price Put Price 6.29 0.74 5.55 0.98 4.85 1.27 4.21 1.61 3.62 2.02 3.09 2.47 2.62 2.99 2.20 3.56 1.84 4.18 1.52 4.85 1.25 5.56 1.01 6.32 0.82 0.66 7.94 0.52 8.79 0.42 9.67 0.33 10.57 0.26 11.49 0.20 12.42 0.15 13.36 0.12 14.31 7.11 60 61 62 63 64 65 Question 2 = A A trader wants to long a bear-spread with K2 = 52 and K1 = 47. . 1. 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 St = 49 III. What is the expected profit of the broker who is short the same bear-spread if St = 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. =