() You stare at your computer screen and see that MSFT's stock is trading at S0=$24.68 (ask price) and S0=$24.65 (bid price). You also have the following information on stock option prices with MSFT as the underlying asset maturing in January. Consider the following trading strategies: (a) Buy a call option with a strike of K=$25 and short a put with a strike of K=$25. (b) Buy a call option with a strike of K=$25 and write a call with a strike of K=$27.5. (c) Buy a put option with a strike of K=$25 and write a put with a strike of K=$22.5. Let ST denote the value of the underlying asset at maturity. (i) For what values of the underlying asset ST does each trading strategy yield positive profits? Give the range for each of the trading strategies, and note that the question is about profits, not payoffs (i.e. factor in the cost of the trading strategy). (ii) Which of the strategies can be considered bearish? Which can be considered bullish? Plot the profits of each of the strategies as a function of ST. () You stare at your computer screen and see that MSFT's stock is trading at S0=$24.68 (ask price) and S0=$24.65 (bid price). You also have the following information on stock option prices with MSFT as the underlying asset maturing in January. Consider the following trading strategies: (a) Buy a call option with a strike of K=$25 and short a put with a strike of K=$25. (b) Buy a call option with a strike of K=$25 and write a call with a strike of K=$27.5. (c) Buy a put option with a strike of K=$25 and write a put with a strike of K=$22.5. Let ST denote the value of the underlying asset at maturity. (i) For what values of the underlying asset ST does each trading strategy yield positive profits? Give the range for each of the trading strategies, and note that the question is about profits, not payoffs (i.e. factor in the cost of the trading strategy). (ii) Which of the strategies can be considered bearish? Which can be considered bullish? Plot the profits of each of the strategies as a function of ST