The current price of stock ABC is 40. Stock ABC pays dividends continuously at a rate proportional to its price. The dividend yield is 3%. The continuously compounded risk-free interest rate is 6%.

The following table shows the premiums of two-year put options on stock ABC of various strike prices:

Let S(2) be the price of stock ABC two years from now. 

Determine the range of values of S(2) for which a 35-45 long bull spread outperforms a 40-strike long straddle, both of which are on stock ABC and expire in two years.

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Strike Price 35 40 45 Put Premium 0.44 1.99 5.08