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If the put options on a stock with strike prices $18 and $20 cost $2 and $3.50, respectively. The two options can be used to

If the put options on a stock with strike prices $18 and $20 cost $2 and $3.50, respectively. The two options can be used to create a bull spread if an investor buys the __(a)__ ($18 put or $20 put) and sell the __(b)__ ($18 put or $20 put). This strategy gives rise to an initial cash _____(c)_____ (inflow or outflow) of $___(d)___.

Stock Price Payoff Profit
ST 20 (e) (h)
18 ST 20 (f) (i)
ST 18 (g) (j)

Provide the information that is missing in the question in order.

(10 marks)

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