Strategies using six-month put options on stock with strike

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Reference no: EM131579184

Create the following trading strategies using 6-month put options on a stock with strike prices of $30 and $35, which the put options are selling for $3 and $4, respectively. Construct the payoff/profit table for the trading strategy and draw the payoff/profit diagram.

a) A bull spread

b) A bear spread

Reference no: EM131579184

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