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B D E 51 52 C) Bear Spread Payoff 53 54 Short put option K1 - 55 Long put option K2= 56 57 Stock Price

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B D E 51 52 C) Bear Spread Payoff 53 54 Short put option K1 - 55 Long put option K2= 56 57 Stock Price (ST) Total Payoff 58 $0.00 59 $5.00 60 $10.00 51 $15.00 52 $20.00 53 $25.00 54 $30.00 55 $35.00 56 $40.00 57 $45.00 8 $50.00 9 $55.00 0 $60.00 2 D) Bear Spread Plot 3 4 5 6 C) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the bear spread, Label the axes and chart title (10 points) Part 3: Box Spread D) Consider buying a call option with a strike of $25 and selling a put option with a strike of $25. Consider buying a put option with a strike of $30 and selling a call option with a strike of $30. Fill in the table for the payoffs of the box spread (10 points) Payoff from a box spread Stock price Payoff from Payoff from Total range bull call spread bear pur spread payol Sy K2 K-K 0 K-K B D E 51 52 C) Bear Spread Payoff 53 54 Short put option K1 - 55 Long put option K2= 56 57 Stock Price (ST) Total Payoff 58 $0.00 59 $5.00 60 $10.00 51 $15.00 52 $20.00 53 $25.00 54 $30.00 55 $35.00 56 $40.00 57 $45.00 8 $50.00 9 $55.00 0 $60.00 2 D) Bear Spread Plot 3 4 5 6 C) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the bear spread, Label the axes and chart title (10 points) Part 3: Box Spread D) Consider buying a call option with a strike of $25 and selling a put option with a strike of $25. Consider buying a put option with a strike of $30 and selling a call option with a strike of $30. Fill in the table for the payoffs of the box spread (10 points) Payoff from a box spread Stock price Payoff from Payoff from Total range bull call spread bear pur spread payol Sy K2 K-K 0 K-K

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