Followings are the strike prices and the relevant options prices for both put and call options. All options are of same maturity

Strike Price Option Price

In $ call Option Put Option

40 $3 $1.4

50 $2.5 $2

Suppose that an investor is interested to construct a bear spread using put option information above. If the market price of underling at maturity is $35, complete the table below?

Option Position ST K f (premium, price,value) Net Pay off

(fill in) $35 $(fill in) $(fill in) $(fill in)

(fill in) $35 $(fill in) $(fill in) $(fill in)

Strategy cost $(fill in)

Strategy Pay off $(fill in)