The current price of a non-dividend paying stock is 40 and the continuously compounded risk-free rate of return is 4%. You enter into a short position on 4 Call options, each with 3 months to maturity, a strike price of 35, and initial premium of $6.13. Simultaneously, you enter into a long position on 5 Call options, each with 3 months to maturity, a strike price of 40, and an option premium of $2.78. Assuming all 9 options are held until maturity, what is

(i) the maximum possible profit?

(ii) the maximum loss for the entire option portfolio?

Could you draw a labeled profit diagram in order to support your answer.