The following three call options on gold, all expiring in three months, sell for: Exercise price Option price $1200 $ 62 $1250 $ 40 $1300 $ 23 Consider the following position: buy 1 call with K = 1200...

The following three call options on gold, all expiring in three months, sell for: Exercise price Option price $1200 $ 62 $1250 $ 40 $1300 $ 23 Consider the following position: buy 1 call with K = 1200 sell (write) 2 calls with K = 1250 buy 1 call with K = 1300 What would be the values at expiration of such a spread for various prices of spot gold? What investment would be required to establish the spread? Given information about the prices of the $1200 and $1300 options, what could you predict about the price of the $1250 option?