This is a problem that has THREE questions. Therefore, please choose THREE answers (one choice for each question) to get full credit for this questions, otherwise you will only get partial points.

A put option with a strike price of $65 costs $8. A put option with a strike price of $75 costs $15.

1) How can a bull spread be created?

2) With the bull spread created above, what is the profit/loss if the stock price is $70?

3) With the bull spread created above, when would the investor gain a positive profit?

		1) A bull spread can be created by buying both the $65 put and the $75 put.
		1) A bull spread can be created by buying the $65 put and shorting the $75 put.
		1) A bull spread can be created by shorting both the $65 put and the $75 put.
		1) A bull spread can be created by shorting the $65 put and buying the $75 put.
		2) A profit of $5 is created when stock price is $70
		2) A profit of $2 is created when stock price is $70
		2) A profit of $0 is created when stock price is $70
		2) A loss of $5 is created when stock price is $70
		3) An investor would gain a positive profit if the stock price is above $75
		3) An investor would gain a positive profit if the stock price is below $65
		3) An investor would gain a positive profit if the stock price is above $68
		3) An investor would gain a positive profit if the stock price is below $78