ll ing of class can be deducted if your work is sloppy, illegible, or untidy In class, we learned about the bull spread and bear spread. In this homework, we will apply what we have learned to other contracts (such as other sprea with 3 different strike prices. ds). These spreads are contracts that involve positions in call or put options examples of roblem 1. e buy one quarter of a call option with strike price of 10 dollars . buy three quarters of a call option with a strike price of 40 dollars, Consider a spread that is created by the following three activities: and sell one call option with a strike price of 20 dollars. (a). Let S ST be the price of the stock at the maturity date. s The payoff of this spread depends on the 4 possible scenarios: S 10,10 20, 20