Call Options (40 Points) You have sold a European call option for Stock...

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Accounting

Call Options (40 Points)
You have sold a European call option for Stock ABC with the strike price of $500, and the premium of this call
option is $20. At the same time, you have also bought a European call option for Stock ABC with the strike price
of $400, and the premium of this call option is $30. Construct the payoff profile from this option strategy and
comment on the gains/losses limitedness.(Hint: What are your profits when the market prices at maturity are
$390,$400,$430,$500,$520, and $550?)
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