Q7. Compute profit diagrams for the following ratio spreads:

1. Buy 950-strike call, sell two 1050-strike calls.
2. Buy two 950-strike calls, sell three 1050-strike calls.
3. Consider buying n 950-strike calls and selling m 1050-strike calls so that the premium of the position is zero. Considering your analysis in (a) and (b), what can you say about the ratio n/m? What exact ratio gives you a zero premium?