)

Suppose you

use a call spread strategy on 4/15/2020, by buying a Facebook call option

with the strike price of $180 at $7 and selling a Facebook call option with the strike price of $195

at $2. Both call options mature on 5/15/2020.

(a)

(3 points) What is your total payoff and profit if Facebook share is traded at $170 on

5/15/2020?

(b)

(3 points) What is your total payoff and profit if Facebook share is traded at $185 on

5/15/2020?

(c)

(3 points) What is your total payoff and profit if Facebook share is traded at $200 on

5/15/2020?