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SCENARIO 2: An investor buys (long) a European put option with a strike price (Ki) of $35 by paying 3$ (P) for the option. He

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SCENARIO 2: An investor buys (long) a European put option with a strike price (Ki) of $35 by paying 3$ (P) for the option. He also writes (sells) a European put option with a strike price (K2) of $30 and receives 1$ (pa). Fill the table below by calculating payoffs and profits from this bull call spread strategy. Assume Sy = Stock price in the spot market. Hint: Your answers should be in terms of Sy such as [S1 -30] or [35- S1] depending on your solution. Payoff Profit Type of Option (Exercise price) Stock price Range Total Payoff (Sum of Payoffs from all Strategies) SISK ? ? SISK ? Ka

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