2. Construct a bear spread with K1=51 and K2=68 a) Find the pay-off of this strategy if the stock is trading at 60 at expiry of the contract. b) Find the profit of this strategy at the same price. c) What is the max pay-off of this bear spread? d) What is the max profit of this bear spread? A stock is currently trading at 60 , one period call and put option prices are given in the table. The risk free rate is 3% for one period. \begin{tabular}{lll} K & \multicolumn{2}{l}{ Call Price Put P } \\ 50 & 12.07 & 0.59 \\ 51 & 11.25 & 0.74 \\ 52 & 10.45 & 0.92 \\ 53 & 9.69 & 1.12 \\ 54 & 8.95 & 1.36 \\ 55 & 8.25 & 1.62 \\ 56 & 7.58 & 1.92 \\ 57 & 6.94 & 2.25 \\ 58 & 6.34 & 2.62 \\ 59 & 5.77 & 3.03 \\ 60 & 5.24 & 3.46 \\ 61 & 4.74 & 3.94 \\ 62 & 4.28 & 4.45 \\ 63 & 3.85 & 4.99 \\ 64 & 3.46 & 5.57 \\ 65 & 3.10 & 6.18 \\ 66 & 2.77 & 6.81 \\ 67 & 2.46 & 7.48 \\ 68 & 2.19 & 8.18 \\ 69 & 1.94 & 8.90 \\ 70 & 1.71 & 9.64 \end{tabular}