A stock is currently priced at $130. The following options, with expiration in 4 months, are available:

K	c	p
120	12.80	1.85
125	8.65	3.11
130	5.05	4.85
135	2.61	7.55
140	1.10	11

Use put options with strike prices of 125 and 135 to create a bear spread.

(a) If the stock price in 3 months is $128, what is your payoff?

(b) What is your maximum possible payoff and when does it occur?