you design a bear spread using two put options : one with a strike price of x1=50

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you design a bear spread using two put options : one with a strike price of x1=50 and a premium p1=3, and the other with the strike price of x2=75 and a premium p2=28. what is the initial cash flow?

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: May 07, 2024 01:56 PM

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you design a bear spread using two put options : one with a strike price of x1=50

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Expert Answer:

In a bear put spread you buy a higher strike put long put and sell a lowe... View the full answer

Fundamentals of Futures and Options Markets

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