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Please show any excel formula that explains the solution if applicable Option Trading Strategies Part 1: Bull Spread A) Consider buying a call option with
Please show any excel formula that explains the solution if applicable
Option Trading Strategies Part 1: Bull Spread A) Consider buying a call option with a strike of $24 and a selling call option with strike of $30. Fill in the table for the payoffs of the bull spread (8 points) Payoff from a bull spread created using calls Stock price Payoff from Payoff from Total range long call option short call option payoff ST K2 ST K1 -(ST K2) K2 K1 B) Plot the graph of the stock price (x-axis) vs. the total payoff (y-axis) for the bull spread. Label the axes and chart title (8 points) 7 A) Bull Spread Payoff 8 9 Long call option K1 = 10 Short call option K2 = 11 12 Stock Price (ST) Total Payoff 13 $0.00 14 $5.00 15 $10.00 16 $15.00 $20.00 18 $25.00 19 $30.00 20 $35.00 21 $40.00 22 $45.00 23 $50.00 24 $55.00 25 $60.00 17 27 B) Bull Spread Plot 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49Step by Step Solution
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