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Problem 7: We consider call options 01, 02, 03 with the same expiration on some underlying stock. We have the following strikes and prices for

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Problem 7: We consider call options 01, 02, 03 with the same expiration on some underlying stock. We have the following strikes and prices for the options: option strike price 014022 0 150 17 03 160 14 (a) Which are the three different bull spreads that you can form with contracts on these options? (3pts) (b) For each of the three bull spreads determine the stock price that maximizes the profit. (3pts) (c) Suppose you invest $12,000 in one of the bull spreads. Create a table showing the number of contracts traded for each bull spread and the maximal profit. Which bull spread should you invest in to maximize your potential profit? (4pts) 1642

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