An option trader buys a $40 put option for $4.2 per share and simultaneously sells a $35 put option for $1.3 per share. Both put options have the same expiration.

a) Write out the mathematical formula for calculating the profit/loss from this strategy.

b) Is this a bull spread or bear spread?

c) Calculate the profit/loss from this strategy when the price of the underlying stock is $26, $38, and $50, respectively, on the expiration date.

d) Plot the profit/loss pattern from both puts and the spread on the same graph.

e) Use Goal Seek or Solver to find the break-even stock price.