8. Suppose that put options on a stock with strike prices $33 and $40 cost $2 and $5, respectively.

a. How can the options be used to create (a) a bull spread and (b) a bear spread?

b. Is there a maximum profit or loss for each strategy? If so, what are they?

c. What are the breakeven points?

d. At what range of future stock prices will the spread make profit and loss.