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Construct a bear money spread using the October 165 and 170 calls. Hold the position until the options expire. Determine the profits and graph the
Construct a bear money spread using the October 165 and 170 calls. Hold the position until the options expire. Determine the profits and graph the results. Identify the breakeven stock price at expiration and the maximum and minimum profits.
\begin{tabular}{lccccccc} \hline & & Calls & & & Puts & \\ & & & & & & \\ Strike & Jul & Aug & Oct & Jul & A ug & Oct \\ \hline 160 & 6.00 & 8.10 & 11.10 & 0.75 & 2.75 & 4.50 \\ 165 & 2.70 & 5.25 & 8.10 & 2.40 & 4.75 & 6.75 \\ 170 & 0.80 & 3.25 & 6.00 & 5.75 & 7.50 & 9.00 \\ \hline \end{tabular}
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