Two European put options with exercise prices of 30 and 35 are currently trading in the market. These options have the same expiration date and are on the same underlying stock. The stock is currently trading at a price of 32. i. Describe in detail how a Bear Spread can be created using put options and call options. (3 marks) ii. Graph the payoff diagram and the profit of the bear spread at maturity. What is the difference between the payoff and profit diagrams? You can draw 2 diagrams in one graph. (4 marks) iii. What view on the future direction of the underlying stock price does an investor who purchases this bear spread hold? Discuss your answer in the context of the current situation of pandemic in the world. (2 marks) Two European put options with exercise prices of 30 and 35 are currently trading in the market. These options have the same expiration date and are on the same underlying stock. The stock is currently trading at a price of 32. i. Describe in detail how a Bear Spread can be created using put options and call options. (3 marks) ii. Graph the payoff diagram and the profit of the bear spread at maturity. What is the difference between the payoff and profit diagrams? You can draw 2 diagrams in one graph. (4 marks) iii. What view on the future direction of the underlying stock price does an investor who purchases this bear spread hold? Discuss your answer in the context of the current situation of pandemic in the world. (2 marks)