1. Suppose MSFT has the following call options available: JUN 30 calls at $4 each, JUN 35 calls at $3, and JUN 40 calls at $ 2, and JUNE 45 calls at $1. You would like to use these call options to construct a long condor strategy.

a. Formulate a strategy for this long condor. Work out the payoff worksheet under the four scenarios (1) future stock price is $30 (2) future stock price is $35 (3) future stock price is $40, and (4) future stock price is $45. Draw the payoff chart (the profit and loss diagram).

b. What is the maximum possible gain from this strategy?

c. What is the maximum possible loss?