Q3 (Bull Spread) AstraZeneca plc (AZN) stock was trading at $45 on August 3, 2011 and the following options prices are available: SEPT 40 put - $1.50 SEPT 50 put - $6 SEPT 40 call - $6 SEPT 50 call - $1

A) What would you do to take a bull spread position using put options?

B) What is the net premium or cost of such a spread? Indicate whether you have to pay or to receive net premium.

C) What is the maximum gain possible on expiration?

D) What is the maximum loss possible on expiration?

E) What is the break-even point of AZN on expiration?

Sept	40	put	$1.50
Sept	50	put	$6
Sept	40	call	$6
Sept	50	call	$1
		Interest rate	4%