An investor engages in the following strategy using European call options:

Strike Price Call Option Price Contracts $95 $10 1 $100 $5 -2 $105 $3 1

That is, the investor shorts two of the calls with a strike of $100 and longs one of each of the other options.

(a) Draw the profit and loss diagram assuming that there are no interest rates (b) Suppose instead that the investor longs the first option, shorts 3 contracts of the second option and longs two contracts for the third option. How does the diagram look like?