The cooked-up Spread Trade. You are bullish on Ford motor company (F). You are bullish on F, and want to take a position. You think that today provides an opportunity as they have taken a hit on their price. You feel that the true intrinsic value of the firm is $15 a share. You decide that the December calls giving you about eight months of exposure is optimal, and you have the data on the calls below. You also feel that the maximum value that the firm could have under the best circumstance is $17 a share.

You think of a second way you could execute the trade, purchase (long) a $12 call option. To decrease the cost, you decide you want to sell (short) ten $17 calls, and buy (long) nine $18 calls. If you made this trade, what is the:

a) Graph the trade

b) Maximum profit

c) Maximum loss

F announced a cash dividend of 0.15 with an ex-date of Apr. 25,2023 Calls for December 15,2023