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1 ) Calculate the payoff and profits from the following positions for St = 3 4 , 3 6 , 3 8 , . .

1) Calculate the payoff and profits from the following positions for St=
34,36,38,....,46(use table 3.1 as a guide). Graph the profit for all values of
30<=S<=50..
a) Buy 100 shares and buy 100 Puts with K=40.
b) Sell 100 shares short and sell 100 Puts with K=40.
d) Sell 100 shares shortand buy 105 Calls with K=42.

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