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the question is attached in the photo construct bull spread strategy using call options draw graph of the bull what will be the payoff what

image text in transcribed

the question is attached in the photo

construct bull spread strategy using call options

draw graph of the bull

what will be the payoff

what will be the cost of strategy

image text in transcribed
` BIGTOBE The_ FINALE Fall Rove Home LEVOUR METthree \\VIEW Calibri ( Body ) -| 21 -| A - A- AS - A = = = = = = = .| | 4= = =\\AT 9TA| 2 +| | 9\\ Aa BbCCD dEe*\\ Aa BbCCD dEe\\ AaBbCCDC AaBbCcDdEE AaBb( AaBbCcDdeE* AaBbCCDdEe* EH paste B| I U - abe X 2 X ?| A . D . A .| | = = = . $2 . S .^ - Normal No Spacing _Heading 1\\ [ Heading 2 Title Subtitle* Subtle Emph Styles pane Question # 1 Followings are the strike prices and the relevant options prices for both put and call options . All options are of same maturity ." 1 . Construct a bull spread strategy using call options . 2 . Draw the graph of the Bull Spread strategy . 3 . What will be the payoff of the strategy if spot price of the underlying asset at maturity is $35 ? What will be the cost of strategy ?" Strike Price Option Price* Ins Call Option | Put Option* 20 $ 4 $0 . 5 25 $3.8 SO . 8 Page 1 of 9\\ 2240 words [[ English ( United States ) 216%

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