1. A trader creates a bear spread by selling a six-month put option with a $25 strike price for $2.50 and buying a six-month put option with a $29 strike price for $4.50. Compute the profit (including the cost) from the spread when the stock price in six months is
(a) $23, (b) $26, and (c) $33.
2. The type of business ownership that has the potential to raise large amounts of capital through the sale of stock is called
a partnership.
a corporation.
a sole proprietorship.
All of the above