Current share price of XXZ Corp is $40. Given his forecasts of the future share value, Mike bought a call option with strike price of $45 and sold a call option with strike of $55. Information on the options can be found in the table below:

Option Type	Exercise Price	Premium
Call	45	$4.01
Call	55	$1.05

All options are European options and have XXZ Corp as underlying; all options have identical maturities. In the table below, tabulate the profits of Mikes investment strategy (ST stands for the share price of XXZ at option maturity; the payoff and profit can be a function of ST).

a) What is the maximum profit? What about maximum loss?

	ST < 45	45 < ST < 55	ST > 55
payoff
Profit

b) Draw the profit and loss diagram for this strategy as a function of the stock price at expiration.