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QUESTION
Suppose that put options on a stock with strike prices $45 and $55 cost $5 and $8, respectively. Use these options to create a bear spread. At what
Suppose that put options on a stock with strike prices $45 and $55 cost $5 and $8, respectively. Use these options to create a bear spread. At what stock price at maturity will you break even? In other words, at what stock price, will you make $0 profit?
