You write a call option with X = 50 and buy a call with X = 60. The options are on the same stock and have the same expiration date. One of the calls sells for $3; the other sells for $9.

a. Draw the payoff graph for this strategy at the option expiration date.

b. Draw the profit graph for this strategy.

c. What is the break-even point for this strategy? Is the investor bullish or bearish on the stock?