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Consider the following options for a stock that is currently trading at 105. a. Construct a call bear spread based on the above table b.

Consider the following options for a stock that is currently trading at 105.

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a. Construct a call bear spread based on the above table b. Construct a put bear spread based on the above table c. Do the spreads in the above questions achieve the same objective? Why/Why not? d. Draw the gross and net payoff diagrams corresponding to your answers for (a) and (b) above.

Strike Call premium Put premium 100 6.30 0.90 105 3.10 2.70 110 1.20 5.80

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