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A trader creates a bear spread using call options with strike prices of $160, and $180 per share by trading a total of 40 option
A trader creates a bear spread using call options with strike prices of $160, and $180 per share by trading a total of 40 option contracts (20 short 160-strike call contracts and 20 long 180-strike call contracts). Each contract is written on 100 shares of stock. The 160- strike call option sells for $25 per share, and the 180-strike call option sells for $14 per share. What is the profit of the bear spread at maturity as a function of the then stock price?
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