1. Consider buying the call option with strike price K = 60 euro with maturity date in one month i.e T =0.5 , which costs 10 euros. Assume that the interest rate is zero. 1.1 Draw a payoff and profit diagram. 1.2 Is your possible profit bounded? If so, what is the higher profit? if no, what behaviour of the underlying stock leads to profit increasing without any bound? 1.3 Assume that the price of the underlying asset at maturity is 65 euros. Does your position lead to positive profit or to a loss? [3] 1.4 Determine all the prices of the underlying asset at expiration, for which the positive profit is achieved