Given the following:

Price of the stock	$18
Price of a three-month call at $20	2
Price of a three-month call at $15	5

a) What is the profit (loss) at the expiration date of the options if the price of the stock is $\mathrm{\$}14,\mathrm{\$}20$, or $\mathrm{\$}25$ and if the investor buys the option with the $\mathrm{\$}20$ strike price and sells the other option?

b) Compare the profit (loss) from this strategy with shorting the stock at $\mathrm{\$}18$.

c) What is the profit (loss) at the expiration date of the options if the price of the stock is $\mathrm{\$}14,\mathrm{\$}20$, or $\mathrm{\$}25$ and if the investor buys the option with the $\mathrm{\$}15$ strike price and sells the other option?

d) Compare the profit (loss) from this strategy with buying the stock at $\mathrm{\$}18$.