The goal of this project is to examine option trading strategies. The project requires you to work in Excel with the provided spreadsheet.

A) Bull Spread Payoff

Long call option K1 =

Short call option K2 =

Stock Price (ST) Total Payoff

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

$55.00

$60.00

A) Consider buying a call option with a strike of $20 and a selling call option with strike of $30. Fill in the table for the payoffs of the bull spread (6 points)

C) Consider selling a put option with a strike of $20 and buying a put option with a strike of $30. Fill in the table for the payoffs of the bear spread (6 points)

E) Consider buying a call option with a strike of $20 and selling a put option with a strike of $20. Consider buying a put option with a strike of $30 and selling a call option with a strike of $30. Fill in the table for the payoffs of the box spread (6 points)

G) Consider buying a call and a put option, both with a strike price of $20 and the same expiration. Fill in the table for the payoffs of the straddle (6 points)