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(1) Question 5 You are considering options on Deerwood Dongles and are cautiously bullish going into the upcoming eamings announcement. You want to establish a

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(1) Question 5 You are considering options on Deerwood Dongles and are cautiously bullish going into the upcoming eamings announcement. You want to establish a LONG VERTICAL \$5 CALL SPREAD starting at the money. Refer to the options chain below where the current stock price (50) is $50.00 \[ \begin{array}{lll} & \multicolumn{3}{c}{\text { Option prices, } T=1} \\ \mathrm{X} & \text { Call } & \text { Put } \\ 80.00 & 5.12 & 22.76 \\ 75.00 & 9.98 & 12.76 \\ 70.00 & 12.00 & 9.93 \\ 65.00 & 14.36 & 7.44 \\ 60.00 & 17.09 & 5.32 \\ 55.00 & 20.21 & 3.58 \\ 50.00 & 23.72 & 2.24 \\ 45.00 & 27.61 & 1.28 \\ 40.00 & 31.82 & 0.64 \end{array} \] sell the 50 call and sell the 60 call bey the 55call and sell the 50call buy the 50call and buy the 50 put buy the 55 put and sell the 50 put buy the 50 call and sell the 55 call

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