You have the following data on call prices covering the same asset with the same expiration date.

Strike Price Call Option Price

$40 $10.50

$45 $6.50

$50 $3.00

a. Suppose an investor purchases one option with X = $40 and one with X = $50, but sells two options with X = $45. Assuming no transaction costs, in what range of asset prices does the investor make a positive net profit?

b. Based on the above strategy, what is the investors maximum potential dollar profit and maximum potential dollar loss?