A call option with strike price of $90 sells for $4 whereas a call option with strike price of $94 sells for $1. You create strategy with following characteristics: long on one call with strike K1, short on two calls with strike K2 (where K2>K1). Thus, you buy one call option with the strike price of 90 and write two call options with the strike price of 94.

a. Perform a "what if" analysis for this strategy: what is the net profit if the stock price ends at 0, 40, 90, 92, 94, 98, and 1,000?)

b. What is the most you could lose in this strategy?

c. What is the most you could make in this strategy?

d. What are the break-even stock prices? e. Make a graph showing net profit versus stock price expiration (St)