1. Six-month call options with strike prices of $35 and $40 cost $6 and $4 respe

1.
Six-month call options with strike
prices of $35 and $40 cost $6 and $4 respectively.
(i)
What is the maximum gain when a bull
spread is created from the calls?_ _ _ _ _ _
(ii)
What is the maximum loss when a bull
spread is created from the calls?_ _ _ _ _ _
(iii)
What is the maximum gain when a bear
spread is created from the calls? _ _ _ _ _
_
(iv)
What is the maximum loss when a bear
spread is created from the calls? _ _ _ _ _
_2.
Three-month European put options with
strike prices of $50 $55 and $60 cost $2 $4 and $7 respectively.
(i)
What is the maximum gain when a
butterfly spread is created from the put options? _ _ _ _ _ _
(ii)
What is the maximum loss when a
butterfly spread is created from the put options? _ _ _ _ _ _
For what two values of the stock price in three
months does the holder of the butterfly spread breakeven with a profit of zero?
_ _ _ _ _ _ _ and _ _ _ _ _ _ _