Suppose that two call options having exercise prices of $40 and $50 are currently available on XYZ stock.

Suppose that two call options having exercise prices of $40 and $50 are currently available on XYZ stock. if the options have the same maturity date, which fo the following strategies will make money if the price of XYZ stock declines from its current level of $35?

a. Purchase the $50 option and sell the $40 option.

b. Purchase the stock and purchase either (but not both) of the options.

c. Sell the $50 option and purchase the $40 option.

d. a, and c.

e. None of the above strategies will be profitable if the price of XYZ decline.