Assume that the Amazon.com share price on January 1 is $ 725 and call options and put options are available with maturity in March. Option series A has an exercise price of $740 (SL), while series B has an exercise price of $760 (SH) for both calls and puts. The price of a call option with an exercise price of $740 is $35 (CL), and the price of a call option with an exercise price of $760 is $20 (CH). The put prices are $48 (PL) and $60 (PH) for options with exercise prices of $740 and $760, respectively.

Note: L represents the low, and H represents the high. CL and CH are the premiums on the calls, and PL and PH are the premiums on the puts. Change the stock prices at expiration by $5 from $600, to $880. Then determine the payoffs on the following strategies. You are supposed to create a spreadsheet to map the payoffs in relation the stock prices at expiration.

1. Bullish spread using Calls. In a bullish money spread, one will write a call with the higher exercise price and buy a call with the lower exercise price.

2. Bearish spread using Calls. In a bearish money spread, one would buy a call with the higher exercise price and write a call with the lower exercise price.