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Strategy for change in stock

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Put options in a stock currently trading at $35 a share with strike prices $30 and $40 cost $4 and $6, respectively. Construct (i) a bullish spread and (ii) a bearish spread from these puts and construct a table that shows the profit (loss) for each strategy for change in stock price. Possible stock prices at expiration are 20, 30, 40, 50, and 75.

Reference no: EM131526056

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