You short a put with maturity in 10 days with strike K1 = $3,850. You buy a put on the same underlying asset with strike K2 =$3,890. St is the price of the underlying asset at maturity.

(i) What is your cash flow at time T (not accounting for any costs of purchasing the portfolio) if a) St<=K1, b) K1<=St<=K2 and c) K2<=St? (ii) Which put is more expensive? Will you make an overall profit or loss if K2<=St?

(iii) Is this strategy bearish (makes money when stock prices fall) or bullish (makes money when stock prices rise)?