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Suppose that put options on a stock with strike prices $ 3 0 and $ 3 5 cost $ 4 and $ 7 , respectively.
Suppose that put options on a stock with strike prices $ and $ cost $ and $ respectively. How can the options be used to create a a bull spread and b a bear spread? Draw the bull and bear spread and construct a table that shows the profit and payoff for both spreads.
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