. suppose you purchase one ibm may 100 call contract at $8 and write (sell) one ibm may 110 call contract at $4. describe the profit diagram associated with this strategy. (5 points) b) the maximum potential profit of your strategy is if both options are exercised (i.e. if the stock price goes to 120). c) if, at expiration, the price of a share of ibm stock is $103, your profit would be: d) what is the maximum that you can lose with this position you have created?
