Question: This is what I was all given. Suppose that put options on a stock with strike prices $ 1 2 0 and $ 1 2
This is what I was all given. Suppose that put options on a stock with strike prices $ and $ cost $ and $ respectively. How can the options be used to create a a bull spread and b a bear spread? Construct a table that shows the profit and payoff for both spreads. What is the cash inflow using the above options to create a bull spread? $ Blank The profit is $ Blank if the stock price turns out to be $ The profit is $ Blank if the stock price turns out to be $ The profit is $ Blank if the stock price turns out to be $ What is the cost using the above options to create a bear spread? $ Blank The profit is $ Blank if the stock price turns out to be $ The profit is $ Blank if the stock price turns out to be $ The profit is $ Blank if the stock price turns out to be $
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