1. An investor makes the following transactions in calls on a stock: Buys one call defined by C_L0 = $7 and X_L = $55. Buys one call defined by C_H0 = $2 and X_H = $65. Sells two calls defined by C_M0= $4 and X_M = $60. (20 pts)

1. Determine the value at expiration and the profit under the following outcomes:
   1. The price of the stock at expiration is $50.
   2. The price of the stock at expiration is $65.