On May 1st 2020, Tesla CEO Elon Musk tweeted that the stock price of the company he runs is probably 'too high'. You want to set up a bear spread on Tesla by purchasing a put with strike 700 and selling a put with strike 650. The closing price of Tesla shares was $701.32 on Friday, May 1st 2020. The following options maturing on May 8, 2020, are available: Strike Put Call Bid Ask 68.95 73.00 51.85 55.70 37.00 39.10 650 675 700 Bid 19.50 25.70 35.45 Ask 20.35 26.95 36.20 Find the total premium you will pay or receive. Is it possible to design the same payoff structure using call options? If yes, compute the total premium of this strategy and compare it with your previous response. Is it possible to build an arbitrage strategy? Note: Tesla Inc. does not pay dividends. The interest payment is negligible for such short time periods. On May 1st 2020, Tesla CEO Elon Musk tweeted that the stock price of the company he runs is probably 'too high'. You want to set up a bear spread on Tesla by purchasing a put with strike 700 and selling a put with strike 650. The closing price of Tesla shares was $701.32 on Friday, May 1st 2020. The following options maturing on May 8, 2020, are available: Strike Put Call Bid Ask 68.95 73.00 51.85 55.70 37.00 39.10 650 675 700 Bid 19.50 25.70 35.45 Ask 20.35 26.95 36.20 Find the total premium you will pay or receive. Is it possible to design the same payoff structure using call options? If yes, compute the total premium of this strategy and compare it with your previous response. Is it possible to build an arbitrage strategy? Note: Tesla Inc. does not pay dividends. The interest payment is negligible for such short time periods