Suppose you bought two Xerox call contracts and one Xerox put contract, both of which will expire in three months. The exercise price of the call is \($70\) and the exercise price of the put is \($75.\) Each option is sold as a 100-share contract.

a. What is your payoff at expiration of your investment if Xerox stock sells for \($65\) on the expiration date? What if it sells for \($72?\) What if it sells for \($80\)?

b. Draw the payoff diagram for the investment.