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4. The premium of a 3-month 40-strike call option on a stock currently selling for S40 is S2.78, and the premium for a 45-strike call

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4. The premium of a 3-month 40-strike call option on a stock currently selling for S40 is S2.78, and the premium for a 45-strike call option on the same stock is S0.97. Consider the bull spread achieved by purchasing the 40-strike call and selling the 45-strike call. 8.33% annual effective. (a) Draw the profit, and time diagram of the bull spread. (b) Find the future value of the net premium

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