What positions you need to take in each of the options

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Suppose that there are two calls on the same stock: one with exercise price K of $30, the other $35. The market value of the call with K = $30 is $2 while that for call with K=$35 is $1.5. What positions you need to take in each of the options to create a bullish call spread? Bearish call spread? Describe the payoffs at various stock prices with a set of equations or table, for each strategy. Show all work.

Reference no: EM13278688

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