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Please let me know the detailed process of solving this problem so that I can figure out how the answers come out. Problem 5. Consider

image text in transcribedPlease let me know the detailed process of solving this problem so that I can figure out how the answers come out.

Problem 5. Consider the following investment strategy using European options on Ford that expire in July. Write one call option with an exercise price of S170, and write another call option with an exercise price of $195. The first call (X-$170) is currently priced at $10 and the second call (X=$195) is priced at $5. . (a) Plot the profit of this strategy (b) What is the maximum potential profit and loss of this strategy? (c) Why would you follow this strategy? (d) What are the stock prices at which this strategy would break even

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