Consider the following so-called Back Ratio option trading strategy where one (1) Buy 1 NVDA 275 European put contract for $7 premium, and (2) Sell 2 NVDA 270 European puts contract for $4 premium with all the puts expired on the same day.

A. What is the maximum profit for this trade at expiry? (Hint: think of the case where the higher strike put is ITM but the lower strike is not)

B. What is the maximum loss for this trade at expiry?

: C. What are the breakeven prices for this trade?

D. Explain the rationale or the view of the trader who would put on the trade?