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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 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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