6 O words Question 5 5 pts Two European put options on a stock have the same expiration date and strike prices of $50 and $60, with option prices $5 and $8, respectively. The current stock price so is $70. a) Explain how a bear spread can be constructed using the two put options. [2 marks) b) For what range of terminal stock prices St would the bear spread lead to a profit? For what range of terminal stock prices St would the bear spread lead to a loss? 12 marks) c) Are the two put options at-the-money, out-of-the-money or in-the-money? (1 mark) Edit View Insert Format Tools Table 15C