An investor buys a ratio spread of 1 year European calls He buys 1 call option with strike price 40 and sells 2 call options with strike price 50 Option prices are Strike price Call option premium 40 10 50 5 Determine the investor's profit if the ending price of the underlying stock is (a) 45, (b) 55, (c) 65 (math Finance)

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An investor buys a ratio spread of 1-year European calls. He buys 1 call option with strike price 40 and sells 2 call options with

An investor buys a ratio spread of 1-year European calls. He buys 1 call option with strike price 40 and sells 2 call options with strike price 50. Option prices are

Strike price	Call option premium
40	10
50	5

Determine the investor's profit if the ending price of the underlying stock is (a) 45, (b) 55, (c) 65. (math Finance)

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