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The Profit from a Put Bear Spread Strategy When Both

Question 7

Multiple Choice

The profit from a put bear spread strategy when both options are out of the money is


A) -X1 + ST + P1 + X2 - ST - P2
B) -X1 + ST + P1 - P2
C) X1 - ST - P1 - X2 + ST + P2
D) P1 + X2 - ST - P2
E) P1 - P2

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