Question: You are considering a bear put spread on ABC Corp. The current stock price is $ 5 0 . You buy a put option with

You are considering a bear put spread on ABC Corp. The current stock price is $50. You buy a put option with a strike price of $50 for $6 and sell a put option with a strike price of $45 for $3. What is the maximum profit, maximum loss, and break-even point for this bear put spread?
Maximum profit: $4; Maximum loss: $3; Break-even: $47
Maximum profit: $5; Maximum loss: $3; Break-even: $47
Maximum profit: $5; Maximum loss: $6; Break-even: $48
Maximum profit: $4; Maximum loss: $6; Break-even: $47

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