1. Stock XYZ is trading today at S50, and pays no dividends. The effective 3 month interest rate is 0.25%. All options are European style and expire in 3 months. Option type Strike Call Put Bid Ask 45 6.75 7.00 45 1.70 1.80 55 2.15 2.25 55 6.90 7.15 Call Construct a bull spread using just the call options and draw its profit diagram at option expiry Construct the same bull spread using just put options and draw its profit diagram at option expiry Don't forget to take interest rates and bid/ask prices in to account