Consider two call options both written on the same stock and with the same expiration date in 6 months. The strike price of call option 1 is $40 and the strike price of call option 2 is $60. Call option 1 costs $10 and call option 2 costs $3. Answer the following questions:

What positions investor should take to create a long spread?

a.Buy call option 2 and buy call option 1

b.Write call option 2 and write call option 1

c.Write call option 1 and buy call option 2

d.Write call option 2 and buy call option 1

e.Buy the underlying stock, write call option 2 and buy call option 1

At what stock prices in 6 months an investor will have a positive profit?

a.If S_T>60$

b.If S_T<47$ or if S_T>55$

c.If S_T>43$

d.If S_T<43$

e.If S_T>47$