You can also create a bull spread using put options To do so, you buy a put and simultaneously sell a put at a higher strike price on the same stock with the same expiration A put with a strike price of $20 is available for $ 15 and a put with a strike price of $25 is available for $1 59 Draw a gra...

Total cost 159 015 144 Stock price Long put payoff Short put payoff Total payoff ...

You can also create a bull spread using put options. To do so, you buy a put

Question:

You can also create a bull spread using put options. To do so, you buy a put and simultaneously sell a put at a higher on the same stock with the same expiration. A put with a of $20 is available for $.15 and a put with a of $25 is available for $1.59. Draw a graph showing the payoff and profit for a bull spread using these options.

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.