Question: Show how to create a bull spread using two call options with strike prices at $50 and $55. The premiums are $3 and $5.25. Which

  1. Show how to create a bull spread using two call options with strike prices at $50 and $55. The premiums are $3 and $5.25.
    1. Which premium is for which option?

  1. Show the payoff diagram and the P&L diagram (you may use the back of this sheet if there is not enough room below).

From your P&L diagram, what is the maximum profit, maximum loss, and breakeven point of the strategy

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