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solve all parts (a,b,c,d) on paper 2. Construct a bear spread with K1=53 and K2=67 a) Find the pay-off of this strategy if the stock
solve all parts (a,b,c,d) on paper
2. Construct a bear spread with K1=53 and K2=67 a) Find the pay-off of this strategy if the stock is trading at 60 at expiry of the contract. b) Find the profit of this strategy at the same price. c) What is the max pay-off of this bear spread? d) What is the max profit of this bear spread Step by Step Solution
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