A bear spread payoff has the form

$g(S_T)=$max$(K_2-S_T,0)-$max$(K_1-S_T,0),$

where $0.$

$(a)$ Sketch the payoff diagram.

$(b)$ Use the general formula for the European option pricing function $to$ find

the time$-$zero option price $of$ a bear spread.

solve by mathematical calculation. not theory