The future value of the call and put option prices (premiums) for the same underlying asset and having the identical maturity date are:

Exercise price 90.0 110.

call premium 14.0 4.0

put premium 2.4 12.0

1.Show the profit diagram for a call bull spread, which is created by buying one call option at the exercise price

90 and selling one call option at 110.Discuss your results.

2.Show the profit diagram for a put bull spread, which is created by buying one put option at the exercise price

90 and selling one put option at 110. Compare your results with those of question 1 and explain the

differences between a call bull spread and a put bull spread.