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A trader creates a bear spread by selling a six-month put option with a $25 strike price for $2.15 and buying a six-month put option
A trader creates a bear spread by selling a six-month put option with a $25 strike price
for $2.15 and buying a six-month put option with a $29 strike price for $4.75. What is
the initial investment? What is the total payoff when the stock price in six months is (a) $23, (b) $28, and (c) $33
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