Three call options on a stock have the same expiration date and strike prices of $45, $50
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Three call options on a stock have the same expiration date and strike prices of $45, $50 and $55. The market prices are $8, $5 and $4, respectively. An investor implements the following strategy: - short a call option with strike price of $45; - short a call option with a strike price of $ 55; - long two call options with strike price of $50. Construct a table and a graph showing the profit from the strategy. For what range of stock prices would the strategy lead to a loss?
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