b) You have a bearish outlook for Boeing. Using put options and the given prices, which Bear Spread has the:

(i) highest maximum payo;

(ii) highest potential rate of return;

Option Payoff Boeing Aerospace currently has a stock price of 167.50. The 1-month options listed below are trading in the market. The term structure of Put 1.78 Call Strike 9.45 160 7.41 165 3.38 170 4.36 5.92 b) You have a bearish outlook for Boeing. Using put options and the given prices, which Bear Spread has the: (i) highest maximum payoff; (ii) highest potential rate of return; (c) Describe the risks of each Bear Spread if the price of Boeing does not change over the next month (i.e. if ST = 167.5). Option Payoff Boeing Aerospace currently has a stock price of 167.50. The 1-month options listed below are trading in the market. The term structure of Put 1.78 Call Strike 9.45 160 7.41 165 3.38 170 4.36 5.92 b) You have a bearish outlook for Boeing. Using put options and the given prices, which Bear Spread has the: (i) highest maximum payoff; (ii) highest potential rate of return; (c) Describe the risks of each Bear Spread if the price of Boeing does not change over the next month (i.e. if ST = 167.5)