Question: please be descriptive and explain how to find the answers and plot them on the graph (5 points) 3. Draw a graph showing an investor's

please be descriptive and explain how to find the answers and plot them on the graph

(5 points) 3. Draw a graph showing an investor's profit and loss (be sure to show maximum gain, maximum loss, and break-even) for a strategy of: a) Buy 1 call with a low strike price $5, option premium = $12; b) Buy a call with a high strike price $25, option premium = $4; c) Sell two calls with an intermediate strike price of $15; option premium = $5 per option. (15 points) Gain St loss b) The option payoff profile above has a name. What is it? (5 points) (5 points) 3. Draw a graph showing an investor's profit and loss (be sure to show maximum gain, maximum loss, and break-even) for a strategy of: a) Buy 1 call with a low strike price $5, option premium = $12; b) Buy a call with a high strike price $25, option premium = $4; c) Sell two calls with an intermediate strike price of $15; option premium = $5 per option. (15 points) Gain St loss b) The option payoff profile above has a name. What is it? (5 points)

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