Combination of options of call option leads to bull spread

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Reference no: EM131995451

a. Which combination of options of call option leads to the Bull Spread?

b. Use the answer in a), provide an upper bound for the slope of the price of a call option. See slides 177 and 181.

c. Which combination of options of call option leads to the Butterfly Spread?

d. Use the answer in a), provide an upper bound for the convexity of the price of a call option. See slides 177 and 182.

Reference no: EM131995451

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