Question: 3. (5 points) You write a call option with X=S40 and buy a call with X=S60. The options are on the same stock and have

3. (5 points) You write a call option with X=S40 and

3. (5 points) You write a call option with X=S40 and buy a call with X=S60. The options are on the same stock and have the same maturity date. One of the calls sells for $2 and the other for $9. a) Draw the profit/loss graph for this strategy b) What is the break-even point of this strategy

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