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A.) Bull Spread Example Long: maturity T call, strike K1, premium, c1 Short: Maturity T call, strike K2, premium, c2 1.) Payoff by underlying stock
A.) Bull Spread Example Long: maturity T call, strike K1, premium, c1 Short: Maturity T call, strike K2, premium, c2 1.) Payoff by underlying stock price regions? StK2 2.) Graphics? 3.) Can you use two puts to achieve the same? B.) Bear Spread Example Long: maturity T put, strike K2, premium, c1 Short: Maturity T put, strike k1, premium, c2 1.) Payoff by underlying stock price regions? StK2 2.) Graphics? 3.) Can you use two calls to achieve the same? A.) Bull Spread Example Long: maturity T call, strike K1, premium, c1 Short: Maturity T call, strike K2, premium, c2 1.) Payoff by underlying stock price regions? StK2 2.) Graphics? 3.) Can you use two puts to achieve the same? B.) Bear Spread Example Long: maturity T put, strike K2, premium, c1 Short: Maturity T put, strike k1, premium, c2 1.) Payoff by underlying stock price regions? StK2 2.) Graphics? 3.) Can you use two calls to achieve the same
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