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Consider the following investment strategy using European options on Ford that expire in July. Write one call option with an exercise price of $170, and write another call option with an exercise price of $195. The first call (X=$170) is currently priced at $10 and the second call (X=$195) is priced at $5. (a) Plot the profit of this strategy (b) Why would you follow this strategy (c) What are the stock prices at which this strategy would break even?

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