Assume that there is an OTC T-bond spot call with an exercise price of $100,000 and premium of $1,000 and an OTC T-bond spot call option with an exercise price of $101,000 and premium of $500. Also assume the options expire at the same time and that there is no accrued interest at expiration. Show graphically and in a table the profit and T-bond price relationships at expiration for the following positions on the OTC T-bond options. Evaluate at spot T-bond prices of $95,000, $97,500, $100,000, $102,500, $105,000, and $107,500.

a. A bull call spread formed by buying the 100 T-bond call and selling the 101 T-bond call.

b. A bear call spread formed by buying the 101 T-bond call and selling the 100 T-bond call.