Please answer all of them with all explanations

3.1. Consider the following investment strategy: buy a call option with exercise price of 100, sell two call options with exercise price 110, and buy a call option with exercise price 120. All options are on the same underlying asset and with the same maturity. (a) Draw a diagram of the net profit. (b) This strategy is called a Butterfly and represents a bet on volatility. Explain briefly the nature of this bet