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Options on the NYSE stock index: Option Strike price ($) Premium ($) Call 45 4 Call 55 2 Construct a bull spread using the options

Options on the NYSE stock index:

Option

Strike price ($)

Premium ($)

Call

45

4

Call

55

2

Construct a bull spread using the options given above. Prepare a table showing the payoff and profit/loss for each option and for the bull spread.

[8 marks]

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