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1. To apply Bull Spread strategy, an investor buys for $3 a three-month call with a strike price of $30 and sells for $1 a
1. To apply Bull Spread strategy, an investor buys for $3 a three-month call with a strike price of $30 and sells for $1 a three-month call with a strike price of $35. The payoff from this bull spread strategy is $5 if the stock price is above $35 and zero if it is below $30. Please consider the different stock prices at expiration date to conduct a profit analysis and draw profit diagram
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