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4. Compute the profit diagram for the following ratio spread: (a) Buy 950-strike calls, and sell two 1050-strike calls. (b) Buy two 950-strike calls, and

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4. Compute the profit diagram for the following ratio spread: (a) Buy 950-strike calls, and sell two 1050-strike calls. (b) Buy two 950-strike calls, and sell three 1050-strike calls. (c) Consider buying n 950-strike calls, and sell m 1050-strike calls so that the premium of the position is zero. Consider your analysis in (a) and (b), which can you say about the n/m? What exact ratio gives a zero premium? 4. Compute the profit diagram for the following ratio spread: (a) Buy 950-strike calls, and sell two 1050-strike calls. (b) Buy two 950-strike calls, and sell three 1050-strike calls. (c) Consider buying n 950-strike calls, and sell m 1050-strike calls so that the premium of the position is zero. Consider your analysis in (a) and (b), which can you say about the n/m? What exact ratio gives a zero premium

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