A trader creates a bear spread by selling a 6-month European call option with a $25 strike price for $4.75 and buying a 6-month European call option with a $29 strike price for $2.15.

a) Write down and comment in detail on the payoff and profit tables of the bear spread strategy on these two call options.

[5 marks]

b) Suppose that the price of the underlying stock in 6 months is $30. Determine the profit from the bear spread strategy.