1. Suppose that call options on a stock with strike prices $50 and $55 cost $4 and $2.5, respectively. How can the options be used to create (a) a bull spread and (b) a bear spread? Construct a table that shows the profit and payoff for both spreads.

1. Suppose that put options on the same stock with strike prices $50 and $55 and the same expiration date cost $3 and $5.2, respectively. How can the options be used to create (a) a bull spread and (b) a bear spread? Construct a table that shows the profit and payoff for both spreads.