A trader creates a bear spread by selling a 6-month put, Financial Management

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A trader creates a bear spread by selling a 6-month put

A trader creates a bear spread by selling a 6-month put option with a $25 strike price for $2.15 and buying a 6-month put option with a $29 strike price for $4.75. What is the initial investment? What is the total payoff (excluding the initial investment) when the stock price in 6 months is (a) $23, (b) $28, and (c) $33.

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Financial Management: A trader creates a bear spread by selling a 6-month put

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