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Please show any excel formula that explains the solution if applicable Part 2: Bear Spread C) Consider selling a put option with a strike of
Please show any excel formula that explains the solution if applicable
Part 2: Bear Spread C) Consider selling a put option with a strike of $24 and buying a put option with a strike of $30. Fill in the table for the payoffs of the bear spread (8 points) Payoff from a bear spread created with put options Stock price Payoff from Payoff from Total range long put option short put option payoff ST K2 0 0 0 D) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the bear spread. Label the axes and chart title (8 points) A B C D E F 50 51 52 c) Bear Spread Payoff 53 54 Short put option K1 = 55 Long put option K2 = 56 57 Stock Price (ST) Total Payoff 58 $0.00 59 $5.00 60 $10.00 61 $15.00 62 $20.00 63 $25.00 64 $30.00 65 $35.00 66 $40.00 67 $45.00 68 $50.00 69 $55.00 70 $60.00 71 72 D) Bear Spread Plot 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95Step by Step Solution
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