1. Consider the following investment strategy involving options with the same expiration date but different strike prices: buy a put option with strike price $40, and write a put option with strike price $50, and write a call option with strike price $60, and buy a call option with strike price $70. (a) Express the pay-offs from this strategy in terms of the price Sr of the underlying (b) For which values of Sr will this strategy make the highest profit? For which values (c) If the initial price of the underlying shares is $55, what could motivate someone shares on the expiration date using a table and a graph will it result in the greatest loss? to adopt this strategy