1. Suppose you purchase one XYZ August 100 call contract at $6.5 and write one XYZ August 110 call contract at $0.5.

a.) What is the maximum potential profit of your strategy?

b.) If, at expiration, the price of a share of XYZ stock is $105, what would be your profit?

c.) What is the maximum loss you could suffer from your strategy?

d.) What is the lowest stock price at which you can break even?