(1) An investor writes a call option to buy 100 shares of Apple. Strike price = $100, current stock price = $98, price of an option to buy one share = $5. Whats the profit and payoff if the stock price is $115 at the expiration? Whats the profit and payoff if the stock price is $92 at the expiration? Calculate the payoff and profits and draw the payoff (not profit) diagram. (5 marks)

(2) An investor buys a call option with a strike price of $45 and a put option with a strike price of $40. Both options have the same maturity. The call costs $3 and the put costs $4. Calculate the investor's profit with this strategy. (5 marks)