You buy a put option with X=70 and short a put with X=60. The options are on the same stock and have the same maturity date. One option sells for $3 and the other option sells for $9.

1. Write out the payoff and profit function for this strategy at the option maturity date

2. Draw the payoff and profit graph for this strategy at the option maturity date.

3. What is the breakeven point for this strategy? What is the investors betting on the stock?