Here are some data on DCRB options as of May 14 for questions 1 to 3. Current stock price is $125.94, expirations are May 21, June 18, and July 16, and the risk-free rates are 0.0447, 0.0446, and 0.0453 respectively.

CALLS PUTS

Exercise Price	May	June	July	May	June	July
120	8.75	15.40	20.90	2.75	9.25	13.65
125	5.75	13.50	18.60	4.60	11.50	16.60
130	3.60	11.35	16.40	7.35	14.25	19.65

Draw a payoff diagram, and calculate the maximum loss, maximum gain, and breakeven for each of the following strategies.

Question 1: A call bull spread strategy: long the June 125 and short the June 130 calls.

Question 2: A put bear spread: long the June 130 put and short the June 125 put.

Question 3: Buy the stock at $125.94, buy the July 120 put for $13.65, and sell a call that has the same price, $13.65. But no such call exists! It turns out that I can create such a call if its exercise price were $136.165. [Hint: this is a collar.]