a. Determine the profits from a time spread formed with a long position in an ABC 60 call expiring in 6 months (T=.5) and trading at $5.46 and a short position in an ABC 60 call expiring in 3 months (T = .25) and trading at $3.49. Assume the spread is closed at the expiration of the short-term call when ABC is trading at $65. Assume o = .35, no dividends, and R = .05. Profit = $0.82