Suppose you short a $42 Put with a premium of $3 and bought a $38 Put with a premium of $1. Ignoring time value of money and transaction costs, calculate max. profit, max. loss and break-even price.

• A.Maximum Profit: $2.00 Maximum Loss: $38.00 Break-even Price: $36.00
• B.Maximum Profit: $4.00 Maximum Loss: $4.00 Break-even Price: $38.00
• C.Maximum Profit: $38.00 Maximum Loss: $2.00 Break-even Price: $44.00
• D.Maximum Profit: $2.00 Maximum Loss: $2.00 Break-even Price: $40.00