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How can the options be used to create a bull spread

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Reference no: EM132917270

Question - Suppose that put options on a stock with strike prices $120 and $125 cost $7.15 and $9.45, respectively. How can the options be used to create (a) a bull spread and (b) a bear spread? Construct a table that shows the profit and payoff for both spreads.

Reference no: EM132917270

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