Draw a graph with stock prices ranging depicting, Finance Basics

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Draw a graph with stock prices ranging depicting

Problem

Consider a bull spread where you buy a 40-strike call and sell a 45-strike call. Suppose S = $40, σ = 0.30, r = 0.08, δ = 0, and T = 0.5. Draw a graph with stock prices ranging from $20 to $60 depicting the profit on the bull spread after 1 day, 3 months, and 6 months.

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Finance Basics: Draw a graph with stock prices ranging depicting

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Finance Basics: Draw a graph with stock prices ranging depicting

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