Compute profit diagrams for the following ratio spreads: a. Buy 950-strike call, sell two 1050-strike calls. b. Buy two 950-strike calls, sell three 1050-strike calls. c. Consider buying n 950-strike...

Compute profit diagrams for the following ratio spreads:

a. Buy 950-strike call, sell two 1050-strike calls.

b. Buy two 950-strike calls, sell three 1050-strike calls.

c. Consider buying n 950-strike calls and selling
 1050-strike calls so that the premium of the position is zero. Considering your analysis in (a) and (b), what can you say about
? What exact ratio gives you a zero premium?