Suppose shortly after you purchased an XYZ December 6o call for ($ 3) the price of the

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Suppose shortly after you purchased an XYZ December 6o call for \(\$ 3\) the price of the stock decreased to \(\$ 56\) per share on speculation of a future announcement of low quarterly earnings for the XYZ Company, which you believe is warranted. Explain how you could profit at expiration by changing your potentially unprofitable call position to a potentially profitable spread position based on the stock decreasing. Assume there is an XYZ September 50 call available at \(\$ 8\) and evaluate the spread at expiration stock prices of \(\$ 45, \$ 50, \$ 55, \$ 60, \$ 65\), and \(\$ 70\).

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