Exercise 1.6. You purchase a "long call ladder" spread by buying one 90 Call for $12.35, selling one 100 Call for $3.15 and selling a 110 Call for $1.20. (a) Plot the payoff diagram of your spread. Label your axes! (6) Plot the profit diagram of your spread (assume, for simplicity, that r=0). (c) Would the spread be worth buying if the 90 Call was priced at $15.00 while the other prices remained the same? Exercise 1.6. You purchase a "long call ladder" spread by buying one 90 Call for $12.35, selling one 100 Call for $3.15 and selling a 110 Call for $1.20. (a) Plot the payoff diagram of your spread. Label your axes! (6) Plot the profit diagram of your spread (assume, for simplicity, that r=0). (c) Would the spread be worth buying if the 90 Call was priced at $15.00 while the other prices remained the same