Question: 3. (9 points) Suppose you use a call spread strategy on 4/15/2020, by buying a Facebook call option with the strike price of $180 at

 3. (9 points) Suppose you use a call spread strategy on

3. (9 points) Suppose you use a call spread strategy on 4/15/2020, by buying a Facebook call option with the strike price of $180 at $7 and selling a Facebook call option with the strike price of $195 at $2. Both call options mature on 5/15/2020. (a) (3 points) What is your total payoff and profit if Facebook share is traded at $170 on 5/15/2020? (b) (3 points) What is your total payoff and profit if Facebook share is traded at $185 on 5/15/2020? () (3 points) What is your total payoff and profit if Facebook share is traded at $200 on 5/15/2020

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