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BULL SPREAD Call options with the strikes of $ 1 6 . 0 0 and $ 2 0 . 0 0 are available on the

BULL SPREAD
Call options with the strikes of $16.00 and $20.00 are available on the exchange.
a. Explain how to construct a bull spread from the above call options.
b. Draw a graph showing payoff of the spread for various realizations of the underlying asset price.
c. Determine the minimum and maximum possible payoffs of the spread.
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