5. In November, you believe that XXX Company, which is currently trading at $95 per share, will drop to $80 per share or less over the next month or two. You sell 3 XXX December 95 Call for a premium of $5.00. At the same time, you buy 3 XXX November 99 Call at a premium of $1.50 (Sell December call with a strike of $95 and $4.00 premium and buy a December Call with a strike of $99 and premium of $1.50).

Determine your gain or loss if

a) the stock price decreases to $88 per share at expiration

b) the stock price increases to $97 per share at expiration

c) the stock price increases to $103 per share at expiration

*Solve without using excel, showing step by step