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Assume that you have a list of stock prices ranging from 30 to 150. Plot a bull spread using calls: Buy a 3-month European
Assume that you have a list of stock prices ranging from 30 to 150. Plot a bull spread using calls: Buy a 3-month European call () with a strike price of $75 and sell a 3-month European call () with a strike price of $85. Show the following: 1. Chart showing the profit/loss for cl at expiration 2. Chart showing the profit/loss for c2 at expiration 3. Chart showing the combination of the two plots (bull spread): long call (c1) and short call (-c2). Include x and y axis labels and legend. Show long call with red color and short call with blue. 4. Chart showing the bull spread with green color, long call with red color and short call with blue color. Include x and y axis labels and legend.
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