1- Sarah just sold a European put option with a strike price of $35 for 20S. If the price of the underlying asset at the maturity of this option is $45, calculate the profit/loss of Sarah and the option buyer. 2- Draw the pay-off diagram for the following strategy: To buy a put option with strike price of K, and, at the same time, to sell a call option with the same maturity and the same strike price as the put option. 3- Imagine you buy a put and a call option simultaneously on the same underlying asset, for the same exercise price, and the same maturity. If the exercise price is $50, and the price of put and call options are $10 and $8, respectively, determine your profit/ loss in each of the following scenarios: At the maturity the price of the underlying asset is 50. At the maturity the price of the underlying asset is 42. - At the maturity the price of the underlying asset is 60