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Suppose that put options on a stock with strike prices $30 and $34 cost $4 and...

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Finance

Suppose that put options on a stock with strike prices $30 and$34 cost $4 and $6, respectively. How can the options be used tocreate (a) a bull spread and (b) a bear spread? Construct a tablethat shows the profit and payoff for both spreads.

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Suppose that put options on a stock with strike prices $30 and$34 cost $4 and $6, respectively. How can the options be used tocreate (a) a bull spread and (b) a bear spread? Construct a tablethat shows the profit and payoff for both spreads.

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