3. An investor executes an option trading strategy that involves writing a stock call option with exercise price $50 and buying another stock call option with exercise price $60. These two options are on the same stock and have the same expiration date. One of the call options sells for $3 and the other sells for $9.

a. What is this option strategy and the initial proceeds for this strategy ? Construct the payoff table for this strategy at the option expiration date.

b. Draw the payoff and profit graphs for this strategy with proper labels.

c. Calculate the break-even point for this strategy. Is this investor bullish or bearish on the underlying stock ?