10. Use the options prices for Spotify in the EXCEL FILE to create a bear spread using the puts with strike prices 170 and 175. Be sure to use the appropriate bid and ask prices. a. What will be your cash flow per share when you set up the position? Show all cash flows: inflows, outflows, and net flow. Inflow Outflow Net Flow b. The maximum profit on the put bear spread is c. The minimum profit on the put bear spread is d. The breakeven point on the put bear spread is e. What will be your gain or loss per share on the net position if at expiration the price of Spotify is $172.25? 11. Use the options prices for Spotify to create a bull spread using call options with 155 and 160 strike prices. Be sure to use the appropriate bid and ask prices. a. What will be your cash flow per share when you set up the position? Show all cash flows: inflows, outflows, and net flow. Inflow Outflow Net Flow b. The maximum profit on the call bull spread is c. The minimum profit on the call bull spread is d. The breakeven point on the call bull spread is e. What will be your profit per share on the net position if at expiration the price of the stock is $157.3? 12. Now, combine the bull and bear spreads. (The result is an Iron Condor.) a. The maximum profit on the Iron Condor is b. The minimum profit on the Iron Condor is c. The breakeven points on Iron Condor are and 13. Use the options prices for Spotify to create a butterfly spread using call options with 160 and 165 and 170 strike prices. Be sure to use the appropriate bid and ask prices. a. What will be your cash flow per share when you set up the position? Show all cash flows: inflows, outflows, and net flow. Inflow Outflow Net Flow b. The maximum profit on the butterfly spread is c. The minimum profit on the butterfly spread is d. The breakeven points on the butterfly spread are and e. What will be your profit per share on the net position if at expiration the price of the stock is $168.54? 14. Broken wing butterfly: From question 13, replace the 160 strike price call with a 155 strike price call. a. What is the net cash flow to set up the position? b. What is the maximum profit? c. What is the minimum profit? d. What is the breakeven point? Call Options Strike Bid 120 125 130 135 140 145 150 45.2 40.2 35.35 30.6 25.95 21.5 17.35 13.6 11.9 10.3 8.85 7.5 6.35 5.25 Ask 44.8 39.9 35.1 30.2 25.7 21.25 17.2 13.45 11.7 10.15 8.75 7.4 6.25 5.15 3.45 2.22 1.38 0.83 0.5 155 157.5 160 162.5 165 167.5 170 175 180 185 190 4.65 Put Options Strike Bid Ask 120 0.15 0.2 125 0.26 0.31 130 0.42 0.47 135 0.68 0.73 140 1.07 1.14 145 1.68 1.74 150 2.59 2.65 155 3.85 3.95 157.5 4.75 160 5.55 5.65 162.5 6.6 6.75 165 7.85 7.95 167.5 9.1 9.25 170 10.55 10.7 175 13.8 14 180 17.55 17.75 185 21.7 21.9 190 26.2 26.45 195 30.85 31.15 3.5 2.25 1.44 0.88 0.55 195