Instructions: For the next 18 questions suppose the following data: The following prices are available for call and put options on a stock priced at $80. The risk- free rate is 6 percent and the volatility is .40. The March options have 90 days remaining and the June options have 180 days remaining. The Black-Scholes model was used to obtain the prices. Calls Puts March 3.51 Strike 75 80 85 June 12.60 10.02 June 5.41 March 9.62 6.89 4.77 5.71 7.69 10.39 7.87 8.52 Assume that each transaction consists of one contract (100 options) unless otherwise indicated. For the next 5 questions, consider a bear money spread using the March 80/75 puts Question: How much is the initial cash flow? o pay $220 o pay $235 o pay $256 o pay $288 o pay $332