Towson Industries' stock currently sells for $85/share and you've decided to create a bull spread position with 3-month European put options on the stock. The first put carries a strike price and premium of $75 and $.50, respectively. The second put has an exercise price and premium of $90 and $5.25, respectively.

Find your profit/loss if Towson trades for $97 when the options expire.

A. -475

B. 475

C. 575

D. -575

E. 1225

Suppose that instead of creating a bull spread, you created a bear spread with the options described in the previous question. Find your proft/loss if Towson trades for $82/share when the options expire.

A. 325

B. 225

C. -325

D. -575

E. None of the above