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immediate help! Two British pound (E) put options are available with exercise prices of $1.52 and $1.56. The premiums associated with these options are $0.04
immediate help!
Two British pound (E) put options are available with exercise prices of $1.52 and $1.56. The premiums associated with these options are $0.04 and $0.05 per unit, respectively. One option contract-represents 631,250 . a. Describe how a bull spread can be constructed using these put options. What is the difference between using put options versus call options to construct a bull spread? A bull spread can be constructed with buying the put option and writing the put option. The difference between using call and put options to construct a bull spread is that using put options results in a spread. b. Complete the worksheet for the bull spread. Use a minus sign to enter loss values, if any. If the answer is zero, enter " 0 ", Round your answers to the neares cent. c. At option expiration, the spot rate of the pound is $1.52. What is the bull spreader's total gain or loss? Use a minus sign to enter loss values, if any. Round your answer to the nearest dollar. $ d. At option expiration, the spot rate of the pound is $1.49. What is the bear spreader's total gain or loss? Use a minus sign to enter loss values, if any, Round your answer to the nearest doliar Step by Step Solution
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