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Suppose you want to create a Bear Put option strategy based on AAPL put options. The Bear Put strategy will involve the following: Buying a

Suppose you want to create a Bear Put option strategy based on AAPL put options. The Bear Put strategy will involve the following: Buying a put option with strike price $155 Selling a put option with strike price $135 You want both of these options to have the same expiration date of July 15, 2022. a) Go to Yahoo! Finance and search for Apple (symbol: AAPL), then click on the Options tab, then select July 15, 2022 from the dropdown box below the stock price to obtain a list of AAPL options with approximately six months to expiration. The Ask price is the price at which you can buy an option while the Bid price is the price at which you can sell an option. Report the bid and ask prices for the two put options described above. Also report the date, time, and stock price when you retrieved these options prices. You should collect these data during regular trading hours (10:30am to 5:00pm CST on weekdays), as bid and ask prices are not always available during off-market hours. b) Provide the payoff function for each range of strike prices in which the stock price could land at expiration. There are three ranges in which the stock price could land at expiration: < 135 135 < < 155 > 155 c) Graph the payoff of the option strategy, with on the x-axis and payoff on the y-axis. d) What is the net cost of the Bear Put strategy? What is the highest possible profit you can make from this option strategy? (Remember to use the bid price when you sell a put option, and the ask price when you buy a put option. You receive money when you sell an option and pay money when you buy an option.)

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