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The common stock of a company is selling today for $53.69. Call options on the company...

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Finance

The common stock of a company is selling today for $53.69. Calloptions on the company expiring in 1-month with strike prices of$49 and $56 are selling for $4.80 and $0.36, respectively.

a. How would you form a bull call spread with the two options(state what kind of options you would buy or sell at what strikeprice to form a call spread)? What is the cost of each spread?

b. If you have $890 on hand, how many spread contracts (eachcontract=100 options) can you buy? Remember that you cannot buyfractional contracts.

c. Find the total amount of profit for a single bull call spreadcreated using the two calls described above when for stock pricesare at 45, 47.5, 50, 52.5, 55, 57.5 at expiration.

d. What is the maximum and minimum profit for a bull call spreadcreated using the two calls described above?

Please show all excel calculations

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