You sold (wrote) 1 call option on IBM stock with an exercise price of $50 for $7.68 and bought 1 call option on the same stock with an exercise price of $60 for $2.37. Both options expire in 5 months. Such a portfolio is called a bear spread.

1. What is your profit from selling the call with K=$50 if the stock price is $20 in 5 months (in $)?

2. What is your profit from buying the call with K=$60 if the stock price is $50 in 5 months (in $)?

3. What is your total profit if the stock price is $100 in 5 months (in $)?