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8marks 2. An investor adopts a Bull spread strategy by buying a call with a low strike price (K) and selling a call with a

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8marks 2. An investor adopts a Bull spread strategy by buying a call with a low strike price (K) and selling a call with a higher strike price (Kn). If he buys a call with strike price $35 at $6 per share and sells a call with strike price $45 at $4. If the stock price at contract maturity were as shown in the Table below from i to vi Long call Stock price @expiration (ST) Payoff on the Short call Payoff on the Bull spread Payoff on the 30 ii. 35 iii. 40 iv. 50 V. 55 vi 65 a. Determine the payoff on the long call, short call and the bull spread strategy from i to vi. Present your solution in a table. Systematically show how you arrived at your answers, 15marks

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