Suppose a stock is currently selling for $32. You buy a six-month European call option with an exercise price of $30 for $2.50 and sell a six-month European call option with an exercise price of $35 for $1. Compute the profit of this strategy (in dollars) as a function of a six month stock price ranging from $25 to $45. Why is this strategy called a bull spread? How would you modify this strategy to create a bear spread?